Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets $ $ Cash $ 35,767 40,972 42,683 Accounts receivable, net 102,626 75,359 57,486 Merchandise inventory 134,247 97,648 61,841 Prepaid expenses 11,748 10,865 4,743 Plant assets, net 321,828 297,756 268,747 $ $ $ Total assets 606,216 522,600 435,500 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings $ 88,319 58,636 112,829 122,602 95,283 163,500 163,500 163,500 181,958 148, 179 118,081 Total liabilities and equity $ $ $ 606,216 522,600 435,500 $ 147,929 For both the current year and one year ago, compute the following ratios: The company's income statements for the current year and 1 year ago, follow. For Year Ended Current Year December 31 1 Year Ago $ Sales 788,081 $ 621,894 $ Cost of goods sold 480,729 404,231 Other operating 244,305 157,339 expenses Interest expense 13,397 Income tax expense 10,245 14,304 9,328 Total costs and 748,676 585,202 expenses Net income $ 39,405 $ 36,692 Earnings per share $ 2.42 $ 2.26 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? Year Ago? Complete this question by entering your answers in the tabs below. Required Required Required Required Required 1A 1B 2 3A 3B Compute profit margin ratio for the current year and one year ago. Current Year: 1 Year Ago: Profit Margin Ratio Numerator: 1 Denominator: Profit Margin Ratio Profit margin 1 ratio - % 1 %