Simon Company's year-end balance sheets follow.
At December 31 2014 2013 2012
Assets
Cash $25,351 $29,930 $30,560
Accounts receivable, net 74,211 51,859 41,158
Merchandise inventory 94,230 67,842 43,833
Prepaid expenses 8,327 7,701 3,361
Plant assets, net 227,566 213,086 192,888
Total assets $429,685 $370,418 $311,800
Liabilities and Equity
Accounts payable $103,782 $63,853 $41,569
Long-term notes payable secured by
mortgages on plant assets 79,973 86,048 68,908
Common stock, $10 par value 163,500 163,500 163,500
Retained earnings 82,430 57,017 37,823
Total liabilities and equity $429,685 $370,418 $311,800
1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 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. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable?