Exercise 17-10 (Algo) Analyzing efficiency and profitability LO P3

O Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below) Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Common stock, $10 par value Retained earnings Total Habilities and equity $ 27,886 80,090 99,701 8,635 248, 212 $ 463,724 $ 31,661 56,526 72,477 8,311 230,787 $ 399,762 $ 32,314 43,085 46,827 3,776 210,498 $ 336,500 $ 115,467 85,437 163,500 99,320 $ 463,724 $ 66,209 92,865 162,500 78,188 $ 399,762 $ 43,974 73,623 162,500 56,403 $336,500 For both the current year and one year ago, compute the following ratios: Exercise 17-10 (Algo) Analyzing efficiency and profitability LO P3 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 Earnings per share Current Year 5 602,841 $367,733 186,881 10,248 27,837 572,699 $ 30,142 $ 1.85 1 Year Ago $ 475,717 $ 309,216 120, 356 10,941 7,136 447,649 $ 28,068 5 1.73 For both the Current Year and 1 Year Ago, compute the following ratios. (1-a) Profit margin ratio (1-6) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover (3-0) 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? VOS FOREVER Required information (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 1A Required 18 Required 2 Required 3A Required 38 Compute profit margin ratio for the current year and one year ago Profit Margin Ratio Numerator: Denominator: Profit Margin Ratio Profit margin ratio Current Year: 1 Year Ago: 4 Required 13 > (3-0) 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 IA Required 1B Required 2 Required 3A Required 38 Compute total asset turnover for the current year and one year ago Total Asset Turnover Denominator: Numerator: Total Asset Turnover Total asset turnover times Current Year: 1 Year Ago: 1 times (3-0) 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 1A Required 18 Required 2 Required 3A Required 3B Compute return on total assets for the current year and one year ago Return On Total Assets Numerator: Denominator: Return On Total Assets Return on total assets Current Year: 1 Year Ago: