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. 2017 2016 2015 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 $ 36,250 $ 37,400 86,800 63,000 50,000 112,500 84,000 55,000 10,200 9,400 5,400 276,000 255,500 233,000 $516,700 $448,150 $380,800 $128,000 $ 74,250 $ 51,200 95,000 100,000 81,400 161,500 161,500 161,500 132,200 112,400 86,700 $516,700 $448,150 $380,800 The company's income statements for the years ended December 31, 2017 and 2016, follow. 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 2017 $765,000 $466,650 214,200 11,100 9,450 701,400 $ 63,600 3.94 2016 $530,000 $339,200 121,900 12,900 8,625 482,625 $ 47,375 $ 2.93 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. $ 3.94 Earnings per share Evaluate the company's efficiency and profitability by computing the following for 2017 and 2018 Exercise 13-10 Part 1 (1) Profit margin ratio. Profit Margin Ratio 1 Choose Denominator: Choose Numerator: = Profit Margin Ratio Profit margin ratio 2017 2016 Exercise 13-10 Part 2 (2) Total asset turnover. Total Asset Turnover I Choose Denominator: Choose Numerator: = Total Asset Turnover Total asset turnover times 2017 2016 times 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 Choose Denominator: Choose Numerator: = Return On Total Assets Return on total assets 2017 2016 ces