Exercise 13-11 (Algo) Analyzing efficiency and profitability LO P3 [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 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 Common stock, $10 par value Retained earnings Total liabilities and equity Current Yr 1 Yr Ago 2 Yrs Ago $ 31,400 $ 35,000 $ 37,600 89,400 61,500 50,500 111,500 80,400 54,500 10,600 9,400 5,100 280,000 253,000 227,000 $522,900 $439,300 $ 374,700 $128,400 $ 74,250 $ 50,200 96,000 100,500 83,000 161,000 161,000 161,000 137,500 103,550 80,500 $522,900 $439,300 $ 374,700 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 $735,000 $570,000 Cost of goods sold $426,300 $359,100 Other operating expenses 227,850 136,800 Interest expense 11,400 13,300 Income tax expense 9,300 8,750 Total costs and expenses 674,850 517,950 Net income $ 60,150 $ 52,050 Earnings per share $ 3.74 $ 3.23 For both the Current Year and 1 Year Ago, compute the following ratios: (2) Total asset turnover Total Asset Turnover Choose Numerator: 1 Choose Denominator: - Total Asset Turnover Total asset turnover times times Current Year: = 1 Year Ago: (3-a) Return on total assets. (3-6) 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 38 Return on total assets. Return On Total Assets Choose Denominator: Choose Numerator: = Return On Total Assets Return on total assets = Current Year: 1 Year Ago: 1 Required 3A Required 3B Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Return on total assets