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 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 Current Year 1 Year Ago 2 Years Ago $31,200 86,200 $ 36,000 $ 37,200 62,000 113,000 82,400 10,650 277,000 9,350 $ 518,050 $128,400 97,500 254,000 $443,750 $ 74,500 99,250 161,500 108,500 161,500 130,650 $ 518,050 $ 443,750 49,500 52,500 5,000 234,000 $ 378,200 $50,800 80,200 161,500 85,700 $ 378,200 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 Earnings per share Current Year $735,000 $ 426,300 227,850 11,500 9,600 675,250 $ 59,750 $ 3.70 1 Year Ago $ 396,800 148,800 12,600 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 (Algo) Part 1 [Alternate Version] (1-0) 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? 9,000 $620,000 567,200 $ 52,800 $3.27