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Required information Use the following information for the Exercises below. (Static) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,800 89,500 112, 500 10,700 278,500 $ 523,000 $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 129,900 98, 500 163, 500 131, 100 $ 523,000 $ 75,250 101,500 163,500 104,750 $ 445,000 $ 51, 250 83,500 163,500 79,250 $ 377,500 Exercise 13-10 (Static) Analyzing efficiency and profitability LO P3 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Year $ 673,500 $ 411,225 209,550 12,100 9,525 642,400 $ 31,100 1 Year Ago $ 532,000 $ 345,500 134, 980 13,300 8,845 502,625 $ 29,375 $ 1.90 Earnings per share $ 1.80 For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (3-a) Return on total assets. (3-b) Based on return on total assets, did Simon's operating efficiency 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 Required 2 Required 3A Required 3B Required 1A Required 1B Required 2 Required 3A Required BB Compute profit margin ratio for the current year and one year ago. Profit Margin Ratio Denominator: Numerator: Il Profit Margin Ratio Profit margin ratio % Current Year: = = % 1 Year Ago: Required 1A Required 1B Required 2 Required 3A Required 3B Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin Required 1A Required 1B Required 2 Required 3A Required 3B Compute total asset turnover for the current year and one year ago. Total Asset Turnover Denominator: Numerator: = Total Asset Turnover = Total asset turnover times Current Year: times 1 Year Ago: Required 1A Required 1B Required 2 LOELEBELEILL Required 3A Required 3B Compute return on total assets for the current year and one year ago. Return On Total Assets Numerator: Denominator: = = Return On Total Assets Return on total assets Current Year: 1 % 1 Year Ago: % Required 1A Required 16 Required 2 Required 3A Required BB Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Return on total assets