Exercise 13-10 Efficiency and profitability analysis LO P3 The following information applies to the questions displayed below) Simon Company's year-end balance sheets follow At December 31 2017 2016 2015 Assets Cash $ 32,400 $ 36,250 $ 38,000 Accounts receivable, 87,000 62,000 50,500 Merchandise inventory 111,000 83,200 54,000 Prepaid expenses 10,350 9,250 5,400 Plant assets, net 276,80 253,500 231,000 Total assets $516,750 $444,200 $378,900 Liabilities and Equity Accounts payable $128,800 $ 73,000 $ 51,400 Long-term notes payable secured by mortgages on plant assets 98,080 108,589 83,800 Common stock, $10 par value 161,000 161,000 161,888 Retained earnings 128,950 199,700 82,700 Total liabilities and equity $516,750 $444,200 $378,900 The company's income statements for the years ended December 31, 2017 and 2016, follow 2017 $715, eee For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share $414,700 214,500 12,000 9,400 2016 $610,000 $384,300 146,400 13,400 8,625 552,725 $ 57,275 $ 3.56 650,600 $ 64,400 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016 Exercise 13-10 Part 1 (1) Profit margin ratio. Choose Numerator: Profit Margin Ratio 1 Choose Denominator: = = Profit Margin Ratio Profit margin ratio 2017 2016 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Exercise 13-10 Part 2 (2) Total asset turnover. Total Asset Turnover 1 Choose Denominator: Choose Numerator: = Total Asset Turnover Total asset turnover times 2017 2016 times LU1153 per Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Exercise 13-10 Part 3 (3) Return on total assets. Return On Total Assets 1 Choose Denominator: Choose Numerator: = Return On Total Assets Return on total assets 2017 2016