00 Required information [The following information applies to the questions displayed below. Part 1 of 3 - Simon Company's year-end balance sheets follow. eBook Hint At December 31 2017 2016 2015 Assets Cash $ 30,000 $ 35,250 $ 38,400 Accounts receivable, net 86,100 62,000 49,500 Merchandise inventory 112,000 83,800 54,000 Prepaid expenses 10,400 9,400 5,100 Plant assets, net 281,000 257,500 226,000 Total assets $519,500 $447,950 $373,000 Liabilities and Equity Accounts payable $129,600 $ 72,750 $ 51,000 Long-term notes payable secured by mortgages on plant assets 96,000 98,750 81,800 Common stock, $10 par value 164,000 164,000 164,000 Retained earnings 129,900 112,450 76,200 Total liabilities and equity $519,500 $ 447,950 $373,000 The company's income statements for the years ended December 31, 2017 and 2016, follow. 2017 2016 $ 765,000 $550,000 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income $451, 350 214,200 11,500 9,500 $352,000 137,500 13,200 8,650 686,550 511, 350 $ 78,450 $ 38,650 Earnings per share $ 4.78 $ 2.36 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. (1) Profit margin ratio. Profit Margin Ratio 1 Choose Denominator: Choose Numerator: Profit Margin Ratio Profit margin ratio = 2017 20161 (2) Total asset turnover. Total Asset Turnover Choose Numerator: 1 Choose Denominator: = 1 = Total Asset Turnover Total asset turnover times times 2017 1 = = 2016 (3) Return on total assets. Return On Total Assets Choose Numerator: 1 Choose Denominator: = 7 II Return On Total Assets Return on total assets % % 2017 2016 1 /