Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net $ 33,735 100,768 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 122,933 11,307 314,708 $ 583,451 $ 40,238 71,825 90,259 10,668 289,985 $ 502,975 $ 43,613 55,327 60,126 4,564 264,070 $ 427,700 $ 86,703 113,371 163,500 139,401 $ 149,638 Long-term notes payable Common stock, $10 par value Retained earnings 107,495 163,500 162,818 Total liabilities and equity $ 583,451 $ 502,975 For both the current year and one year ago, compute the following ratios: $ 56,456 96,412 163,500 111,332 $ 427,700 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 1 Year Ago Current Year $ 758,486 $ 462,676 235,131 $ 389,051 151,431 13,766 8,978 720,561 12,894 9,860 $ 37,925 $ 598,540 563,226 $ 35,314 Earnings per share $ 2.33 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. $ 2.17 (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 % 1 = % < Required 1A Required 1B > Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin Compute total asset turnover for the current year and one year ago. Current Year: 1 Year Ago: Total Asset Turnover Numerator: Denominator: = Total Asset Turnover = Total asset turnover = times = times Compute return on total assets for the current year and one year ago. Return On Total Assets Current Year: 1 Year Ago: Numerator: Denominator: = = Return On Total Assets Return on total assets = = % % 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