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 $ 30,600 88,200 110,500 10,450 280,000 $519,750 $ 36,000 $ 37,200 64,000 51,000 82,800 53,000 9,450 5,000 251,000 226,000 $443,250 $ 372,200 $130,000 $ 73, 750 $ 51,000 95,500 162,500 131,750 $519,750 100,000 82,200 162,500 162,500 107,000 76,500 $443,250 $ 372,200 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 $705,000 $415,950 225,600 12,300 9,550 663,400 $ 41,600 $ 2.56 1 Yr Ago $ 580,000 $371,200 139,200 13,500 8,575 532,475 $ 47,525 $ 2.92 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 Part 1 (1-a) Profit margin ratio. (9-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 | Choose Denominator: Choose Numerator: II 11 Profit Margin Ratio Profit margin ratio % % Current Year: = 1 Year Ago: 11 Required 1A Required 1B > Exercise 13-10 Part 2 (2) Total asset turnover. Total Asset Turnover Choose Numerator: / Choose Denominator: = Total Asset Turnover 1 = Total asset turnover Current Year: / = times 1 Year Ago: 1 = times Exercise 13-10 Part 3 (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 3B Return on total assets Return On Total Assets Choose Numerator: 1 Choose Denominator: = Return On Total Assets / = Return on total assets Current Year: / = % 1 Year Ago: / = Required 3A Required 3B Exercise 13-10 Part 3 (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 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 Required 3A Required 3B