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 $ 26,489 76,773 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable 94,635 8,363 233,904 $ 30,660 53,655 70,901 7,809 216,427 $ 379,452 $ 440,164 $ 109,601 Long-term notes payable 84,406 Common stock, $10 par value 162,500 83,657 $ 62,845 86,401 162,500 67,706 Total liabilities and equity $ 440,164 $ 379,452 Retained earnings For both the current year and one year ago, compute the following ratios: $ 29,785 40,929 43,158 3,377 189,751 $ 307,000 $ 40,524 67,847 163,500 35,129 $ 307,000 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 Current Year 1 Year Ago $ 572,213 $ 451,548 $ 349,050 177,386 $ 293,506 114,242 10,386 6,773 9,728 7,439 543,603 $ 28,610 424,907 Earnings per share $ 1.76 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. $ 26,641 $ 1.64 (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 % < Required 1A Required 1B > 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 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: Total Asset Turnover / = Total asset turnover times times Required 1A Required 1B Required 2 Required 3A Required 3B Compute return on total assets for the current year and one year ago. Numerator: % Return On Total Assets Denominator: Return On Total Assets = Return on total assets = % = % Current Year: 1 Year Ago: 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