it does not specify but does say the selling price and variable costs remain the same.

Simon Company's year-end balance sheets follow. For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of totat assets favorable or unfavorable? 3. Assuming annual soles have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable