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 $ 32,000 87,200 113,000 10,650 276,000 $518,850 $ 35,750 $ 37,800 62,000 49,000 83,400 54,500 9,350 4,600 256,000 231,000 $446,500 $ 376,900 $129,600 $ 73,750 $ 51,200 96,500 162,000 130,750 $518,850 100,000 82,600 162,000 162,000 110,750 81,100 $446,500 $ 376,900 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 Total costs and expenses Net income Current Yr $715,000 $414,700 228,800 11,800 9,550 664,850 $ 50, 150 1 Yr Ago $ 610,000 $390,400 152,500 13,200 8,750 564,850 $ 45, 150 $ 2.79 Earnings per share $ 3.10 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 Part 2 (2) Total asset turnover. Total Asset Turnover Choose Numerator: 1 Choose Denominator: = Total Asset Turnover / Total asset turnover Current Year: / = times 1 Year Ago: / II times Exercise 13-10 Part 3 (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 3A Required 3B Return on total assets Return On Total Assets Choose Numerator: | Choose Denominator: II Return On Total Assets / II Return on total assets Current Year: = % 1 Year Ago: / = %