Exercise 13-10 Analyzing efficiency and profitability LO P3 [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 30,400 $ 35,250 $ 38,200 87, 700 61,000 51,000 112,500 83,200 52,500 10,800 9,250 4,700 277,000 250, 500 231,000 $518,400 $439,200 $ 377,400 $128,400 $ 72,500 $ 51,200 96,000 160,500 133,500 $518,400 101,750 83,400 160,500 160,500 104,450 82,300 $439,200 $ 377,400 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 Yr $775,000 $472,750 248,000 12,000 9,450 742,200 $ 32,800 $ 2.04 1 Yr Ago $ 610,000 $378,200 146,400 13,500 8,758 546,850 $ 63,150 $ 3.93 Exercise 13-10 Part 1 (1-0) Profit margin ratio. (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 18 Profit margin ratio. Profit Margin Ratio Choose Denominator: Choose Numerator: Profit Margin Ratio Profit margin ratio 0 % 01% Current Year: 1 Year Ago: Required 1B > Exercise 13-10 Part 2 (2) Total asset turnover Total Asset Turnover Choose Numerator: Choose Denominator Total Asset Turnover Total asset turnover Current Year: times 1 Year Ago HI times Exercise 13-10 Part 3 (3-) Return on total assets. (3-6) 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 3A Required 3B Return on total assets Return On Total Assets Choose Numerator Choose Denominator. Return On Total Assets Retum on total assets 9 Current Year 1 Year Ago RA Required 38 >