Simon Company's year-end balance sheets follow.

At December 31	Current Yr				1 Yr Ago			2 Yrs Ago
Assets
Cash		$	36,724		$	43,360		$	44,273
Accounts receivable, net			106,437			73,604			60,801
Merchandise inventory			132,473			99,268			63,502
Prepaid expenses			12,304			11,610			5,018
Plant assets, net			340,789			314,164			273,606
Total assets		$	628,727		$	542,006		$	447,200
Liabilities and Equity
Accounts payable		$	151,856		$	91,599		$	58,440
Long-term notes payable secured by mortgages on plant assets			115,837			124,661			98,831
Common stock, $10 par value			163,500			163,500			163,500
Retained earnings			197,534			162,246			126,429
Total liabilities and equity		$	628,727		$	542,006		$	447,200

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?

SIMON COMPANY Common-Size Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash % % % Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets % % % Liabilities and Equity Accounts payable % % % Long-term notes payable secured by mortgages on plant assets Common stock, $10 par Retained earnings Total liabilities and equity % % %

	2. Change in accounts receivable 3. Change in merchandise inventory