Required information Exercise 13-10 Analyzing efficiency and profitability LO P3 [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 30,200 88,180 11 , 10,550 277,080 $515,850 $ 35,000 $ 38,200 63,500 5e, 600 83,400 52,800 9,400 4,400 253,500 235, eee $444,800 $ 379,600 $130,000 $ 75,000 $50,680 97,500 161,000 127,350 $515,850 180,000 81,000 161,080 161,800 188,888 87,0ee $444,800 $ 379,680 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 Yr $755,000 $468,100 234,850 12,080 9,350 723,500 $ 31,500 $ 1.96 1 Yr Ago $ 580,000 $365, 480 139,209 13,800 8,675 526,275 $ 53,725 3.34 For both the Current Year and 1 Year Ago, compute the following ratios. Exercise 13-10 Part 1 (1-a) Profit margin ratio. (1-b) Did profit margin 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 1B Profit margin ratio. Profit Margin Ratio 1 Choose Denominator Choose Numerator: Profit Margin Ratio Profit margin ratio Current Year: 1 Year Ago: 1 95 Required 1 Required 13 > Exercise 13-10 Part 1 (1-a) Profit margin ratio. (1-b) Did profit margin 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 1B Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin (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 3A Required 38 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