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 $ 31,200 86,800 112,000 10,750 280,000 $520,750 $ 35,500 $ 37,200 64,000 50,500 82,400 54,500 9,450 4,400 250,500 231,000 $441,850 $ 377,600 $129,600 $ 75,750 $ 51,000 98,000 163,000 130,150 $520,750 99,500 163,000 103,600 $441,850 83,800 163,000 79,800 $ 377,600 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 $ 755,000 $468,100 234,050 11,400 9,500 723,050 $ 31,950 1 Yr Ago $ 580,000 $359, 600 133,400 13,100 8,500 514,600 $ 65,400 Earnings per share $ 1.96 $ 4.01 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 Part 1 (1-a) 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 1B Profit margin ratio. Profit Margin Ratio Choose Numerator: Choose Denominator: = / = Profit Margin Ratio Profit margin ratio % Current Year: / = 1 Year Ago: / = Exercise 13-10 Part 2 (2) Total asset turnover. Total Asset Turnover Choose Numerator: / Choose Denominator: II Total Asset Turnover / = Total asset turnover Current Year: 1 II times 1 Year Ago: 1 = 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: = Return On Total Assets / = Return on total assets 1 11 % Current Year: 1 Year Ago: / II %