2 ! Part 1 of 2 2 points Required information Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3 [Alternate Version] [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Skipped Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 38,000 $ 31,400 88,200 110,500 10,600 277,000 eBook $ 517,700 $ 129,600 Long-term notes payable Hint Common stock, $10 par value Total liabilities and equity Print References Retained earnings 96,000 162,000 130,100 $ 517,700 $ 35,250 61,000 82,400 9,500 257,000 $ 445,150 $ 73,750 101,000 162,000 108,400 $445,150 50,000 52,500 5,400 233,000 $ 378,900 $51,000 82,800 162,000 83,100 $ 378,900 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales 1 Year Ago $ 550,000 Current Year $ 755,000 Cost of goods sold 445,450 Other operating expenses 234,050 Interest expense 12,300 Income tax expense 9,400 Total costs and expenses Net income Earnings per share $ 3.32 701,200 $ 53,800 $ 341,000 126,500 13,000 8,525 489,025 $ 60,975 $ 3.76 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 (Algo) Part 1 [Alternate Version] (1-a) Compute profit margin ratio for the current year and one year ago. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Compute profit margin ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Profit Margin Ratio Denominator: -Profit Margin Ratio = Profit margin ratio % < Required 1A Required 1B > %