! Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 29,723 51,490 $ 31,587 42,116 $ 26,198 72,953 95,469 8,437 232,278 $ 435,335 $ 110,566 Long-term notes payable Common stock, $10 par value Total liabilities and equity Retained earnings 84,298 163,500 76,971 71,511 7,723 214,842 $ 375,289 $ 62,790 87,180 163,500 61,819 $ 435,335 $ 375,289 For both the current year and one year ago, compute the following ratios: 44,409 3,544 194,244 $ 315,900 $ 41,699 69,814 162,500 41,887 $ 315,900 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Interest expense Other operating expenses Income tax expense Total costs and expenses Net income Earnings per share Current Year 1 Year Ago $ 565,936 $ 446,594 $ 345,221 175,440 9,621 7,357 $ 28,297 $ 290,286 112,988 10,272 6,699 537,639 $ 1.74 420,245 $ 26,349 $ 1.62 For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (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 1A Required 1B Required 2 Required 3A Required 3B Compute profit margin ratio for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Profit Margin Ratio Denominator: = Profit Margin Ratio = Profit margin ratio = % = % Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin < Required 1A Required 2 > Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Compute total asset turnover for the current year and one year ago. Current Year: 1 Year Ago: Total Asset Turnover Numerator: Denominator: 1 1 Total Asset Turnover = Total asset turnover = times = times < Required 1B Required 3A > Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Compute return on total assets for the current year and one year ago. Current Year: 1 Year Ago: Numerator: Return On Total Assets Denominator: = Return On Total Assets = Return on total assets = || % = || % < Required 2 Required 3B > Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 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 >