Required Information Exercise 17-10 Efficiency and profitablllty 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 $ 31,000 $ 36,800 $ 37,600 Accounts receivable, net 90,000 61,000 50,500 Merchandise inventory 111, see 80,200 53, eee Prepaid expenses 10,700 9,500 5,188 Plant assets, net 278,000 249,500 233,000 Total assets $521,200 $436,200 $379,200 Liabilities and Equity Accounts payable $129,200 $ 74,750 $ 51,280 Long-term notes payable secured by mortgages on plant assets 96,500 99,800 80,600 Common stock, $10 par value 162,50 162,500 162,500 Retained earnings 133,000 99,950 85,180 Total liabilities and equity $521,200 $436,200 $379, 280 The company's Income statements for the years ended December 31, 2017 and 2016, follow. 2016 $530,000 For Year Ended December 2017 31 Sales $715,000 cost of goods sold $429,000 other operating 207,350 expenses Interest expense 11,400 Income taxes 9,500 Total costs and expenses 657,250 Net income $ 57,750 Earnings per share $ 3.55 $333,900 132,500 12,600 8,925 487,925 $ 42,075 $ 2.59 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Exercise 17-10 Part 1 (1) Profit margin ratio. Choose Numerator: Profit Margin Ratio 1 Choose Denominator: 1 1 1 = Profit Margin Ratio Profit margin ratio = 2017 2016 1111 = % Exercise 17-10 Part 2 (2) Total asset turnover. Choose Numerator: Total Asset Turnover 1 Choose Denominator: 1 = Total Asset Turnover Total asset turnover times 2017 1 2016 1 = times Exercise 17-10 Part 3 (3) Return on total assets. Return On Total Assets 1 Choose Denominator Choose Numerator: - Return On Total Assets Return on total assets = 1 2017 2016 =