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Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,077 $ 36,326 $ 35,635 Accounts receivable, net 88,304 62,324 48,968 Merchandise inventory 109,915 83,180 53,200 Prepaid expenses 10,008 9,629 4,000 Plant assets, net 277,091 253,709 225,497 Total assets $ 516,395 $ 445,168 $ 367,300 Liabilities and Equity Accounts payable $ 128,582 $ 76,738 $ 47,514 Long-term notes payable...

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Accounting

Simon Company's year-end balance sheets follow.

At December31Current Yr1Yr Ago2Yrs Ago
Assets
Cash$31,077$36,326$35,635
Accountsreceivable, net88,30462,32448,968
Merchandiseinventory109,91583,18053,200
Prepaidexpenses10,0089,6294,000
Plant assets,net277,091253,709225,497
Totalassets$516,395$445,168$367,300
Liabilities and Equity
Accountspayable$128,582$76,738$47,514
Long-term notespayable secured by
mortgages on plant assets		96,111105,46080,362
Common stock,$10 par value163,500163,500163,500
Retainedearnings128,20299,47075,924
Totalliabilities and equity$516,395$445,168$367,300


1. Express the balance sheets in common-sizepercents. (Do not round intermediate calculations and roundyour final percentage answers to 1 decimal place.)
2. Assuming annual sales have not changed in thelast three years, is the change in accounts receivable as apercentage of total assets favorable or unfavorable?
3. Assuming annual sales have not changed in thelast three years, is the change in merchandise inventory as apercentage of total assets favorable or unfavorable?

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