Exercise 17-10 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 $ 30,600 $35.750 $37.000 Accounts receivable, net 36,200 63.000 50.500 Merchandise inventory 112,000 81.800 54.500 Prepaid expenses 10.700 9.350 4.900 Plant assets, net 278,000 254,000 226,000 Total assets $517,500 $443,900 $372,900 Liabilities and Equity Accounts payable $129,200 $ 72,250 $ 51,000 Long-term notes payable secured by mortgages on plant assets 97,000 99,500 82,800 Common stock, $10 par 161,500 161,500 161,500 value Retained earnings 129,800 110,650 77,600 Total liabilities and $517,500 $443,900 $372,900 equity The company's income statements for the years ended December 31, 2017 and 2016, follow. 2016 $520,000 $ 332,800 119,600 For Year Ended 2017 December 31 Sales $685,000 Coat of goods $424.700 sold Other operating 191.800 expenses Interest 12,000 expense Income taxes 9,350 Total costs and 637,850 expenses Net income Earnings per $ 2.92 share 12,900 8,700 474.000 $ 47,150 $ 46,000 $ 2.85 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016 Exercise 17-10 Part 1 (1) Profit margin ratio Profit Margin Ratio Choose Denominator: Choose Numerator: = Profit Margin Ratio Profit margin 2017 2016 (2) Total asset turnover. Total Asset Turnover 1 Choose Denominator: Choose Numerator: Total Asset Turnover Total asset tumover times 2017 2016 (3) Return on total assets. Return On Total Assets Choose Denominator Choose Numerator: Return On Total Assets Return on total assets 2017 2016