Simon Company’s year-end balance sheets follow. 

(1) Express the balance sheets in common-size percents. Round percents to one decimal. 

(2) Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 

(3) Is the change in merchandise inventory as a percentage of total assets favorable or unfavorable?

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At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash...... $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net. 89,500 62,500 50,200 Merchandise inventory... Prepaid expenses... 112,500 82,500 54,000 10,700 9,375 5,000 Plant assets, net. 278,500 255,000 230,500 Total assets... $523,000 $445,000 $377,500 Liabilities and Equity Accounts payable ...... Long-term notes payable.... Common stock, $10 par value..... $129,900 $ 75,250 $ 51,250 98,500 101,500 83,500 163,500 163,500 163,500 Retained earnings..... 131,100 104,750 79,250 Total liabilities and equity... $523,000 $445,000 $377,500