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. 50,500 55,000 At December 31 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 $ 35,500 61,500 $ 38,000 $ 30,400 88,100 112,000 10,450 280,000 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 83,400 9,200 249,000 $ 520,950 $ 438,600 $ 129,600 95,000 162,500 133,850 $ 72,000 99,500 162,500 104,600 $ 520,950 $ 438,600 4,400 232,000 $ 379,900 $ 51,000 81,600 162,500 84,800 $ 379,900 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 Current Year $ 765,000 $ 466,650 237,150 11,500 9,300 1 Year Ago $ 560,000 724,600 $ 40,400 $ 2.49 $ 358,400 140,000 12,600 8,750 519,750 $ 40,250 $ 2.48 Total costs and expenses Net income Earnings per share For both the Current Year and 1 Year Ago, compute the following ratios: 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 Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin (2) Compute total asset turnover for the current year and one year ago. Total Asset Turnover Current Year: 1 Year Ago: Numerator: Denominator: Total Asset Turnover Total asset turnover = times times