Required information Exercise 13-10 Efficiency and profitability analysis LO P3 [The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 32,200 $ 35,500 $ 37,200 Accounts receivable, net 89,200 62,000 49,500 Merchandise inventory 111,500 81,200 53,500 Prepaid expenses 10,800 9,500 4,600 Plant assets, net 277,000 256,000 233,000 Total assets $ 520,700 $ 444,200 $ 377,800 Liabilities and Equity Accounts payable $ 129,200 $ 74,750 $ 50,200 Long-term notes payable secured by mortgages on plant assets 97,500 98,500 83,800 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 130,500 107,450 80,300 Total liabilities and equity $ 520,700 $ 444,200 $ 377,800 The companys income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 2017 2016 Sales $ 685,000 $ 620,000 Cost of goods sold $ 397,300 $ 396,800 Other operating expenses 191,800 148,800 Interest expense 11,500 12,800 Income taxes 9,350 8,625 Total costs and expenses 609,950 567,025 Net income $ 75,050 $ 52,975 Earnings per share $ 4.59 $ 3.24 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Exercise 13-10 Part 1 (1) Profit margin ratio.