(Efficiency and profitability analysis)

Refer to Simon Company's financila information below. Evaluate the company's efficiency and profitability by computing the following for 2015 and 2014: (1) profit margin ratio - percent rounded to one decimal, (2) total asset turnover - rounded to one decimal, and (3) return on total assets - percent rounded to one decimal. Comment on these ratio results.

For Year ended December 31		2015		2014
sales		$673,500		$532,000
Cost of goods sold	$411,225		$345,500
Other operating expenses	209,550		134,980
Interest expense	12,100		13,300
Income taxes	9,525		8,845
Total cost and expenses		642,400		502,625
Net income		31,100		29,375
Earnings per share		1.90		1.80

Simon Companys information: At December 31	2015	2014	2013
Assets
Cash	$31,800	$35,625	$37,800
Accounts receivable,net	89,500	62,500	50,200
Merchandise inventory	112,500	82,500	54,000
Prepaid expenses	10,700	9,375	5,000
Plant assets,net	278,500	255,000	230,500
Total assets	$523,000	$445,000	$377,500
Liabilities and Equity
Accounts payable	$129,900	$75,250	$51,250
Long-term notes payable secured by mortgage on plant assets	98,500	101,500	83,500
Common Stock, $10 par value	163,500	163,500	163,500
Retained earnings	131,100	104,750	79,250
Total Liabilities and equity	$523,000	$445,000	$377,500