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Required information 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

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Required information 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 $ 31,600 86,800 112,000 10,500 281,000 $521,900 $ 36,250 $ 37,200 62,500 50,000 84,000 55,800 9,250 4,900 254,500 234,000 $446,500 $ 381,100 $128,000 $ 73,000 $50,200 96,000 162,500 135,400 $521,900 99,000 80,000 162,500 162,500 112,000 88,400 $446,500 $ 381,100 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 $745,000 $439,550 238, 409 11,700 9,350 699,000 $ 46,000 $ 2.83 1 Yr Ago $ 600,000 $372,000 150,000 13,100 8,550 543,650 56,350 $ 3.47 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? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Profit margin ratio. Profit Margin Ratio 1 Choose Denominator: Choose Numerator: 1 - Profit Margin Ratio Profit margin ratio = 9 96 1 Current Year: 1 Year Ago: 1 Required 18 > (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 Did profit margin improve or wrsen in the Current Year versus 1 Year Ago?

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