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. At December 31 Assets Cash Current Yr 1 Yr Ago 2 Yrs Ago Accounts receivable, net $ 30,400 87,400 $ 35,750 $ 37,600 61,000 50,500 Merchandise inventory 111,500 81,200 54,500 Prepaid expenses 10,650 9,450 4,500 Plant assets, net 282,000 257,000 226,000 Total assets $521,950 $444,400 $ 373,100 Liabilities and Equity Accounts payable $129,200 $ 73,250 $ 50,000 Long-term notes payable secured by mortgages on plant assets 97,500 100,750 82,400 Common stock, $10 par value 163,000 163,000 163,000 Retained earnings 132,250 107,400 77,700 Total liabilities and equity $521,950 $444,400 $ 373,100 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Yr Sales $775,000 Cost of goods sold $480,500 Other operating expenses 240,250 Interest expense 11,800 Income tax expense 9,600 Total costs and expenses 742,150 Net income $ 32,850 Earnings per share $ 2.02 1 Yr Ago $341,000 126,500 13,000 8,700 $ 550,000 489,200 $ 60,800 3.73 For both the Current Year and 1 Ye 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 Choose Numerator: 1 Choose Denominator: Profit Margin Ratio = Profit margin ratio Current Year: = 0 % 1 Year Ago: 096 Required 1B >