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 $ 30,800 89,000 113,000 10,700 276,000 $519,500 $ 36,500 $ 37,200 61,500 50, 500 82,000 52,000 9,400 4,600 258,000 228,000 $447, 400 $ 372,300 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses plant assets, net Total assets Liabilities and Equity Accounts payable Tong-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $129,200 $ 73, 750 $ 51,000 98,000 162,000 130,300 $519,500 99,500 80,400 162,000 162,000 112,150 78.900 $447, 400 $ 372,300 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $755,000 $540,000 Cost of goods sold $453,000 $334,800 Other operating expenses 234,050 135,000 Interest expense 12,400 12,700 Income tax expense 9,350 8,800 Total costs and expenses 708,800 491,300 Net income $ 46,200 $ 48,700 Earnings per share 2.85 $ 3.01 For both the Current Year and 1 Year Ago, compute the following ratios: 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 Denominator: Choose Numerator: Profit Margin Ratio Profit margin ratio % 1 Current Year: 1 Year Ago: % gured 1A Required 18 >