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 $ 30,000 87,700 112,500 10,800 280,000 $521,000 $ 35,250 $ 37,400 62,000 49,500 80,600 54,500 9,500 5,400 259,000 233, 000 $446,350 $ 379,800 $128,800 $ 74,250 $ 51,000 97,500 160,500 134,200 $521,000 99, 250 80,600 160,500 160,500 112,350 _87,700 $446,350 $ 379,800 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 $775,000 $465,000 240, 250 11,300 9,300 725,850 $ 49, 150 $ 3.06 1 Yr Ago $ 550,000 $346,500 132,000 12,600 8,975 500, 075 $ 49,925 $ 3.11 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 1B Profit margin ratio. Profit Margin Ratio 1 Choose Denominator: Choose Numerator: = Profit Margin Ratio Profit margin ratio Current Year: 1 Year Ago: (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 worsen in the Current Year versus 1 Year Ago? Profit margin Required 1A Required 1B ) (2) Total asset turnover. Total Asset Turnover Choose Numerator: Choose Denominator: = Total Asset Turnover Total asset turnover times Current Year: 1 Year Ago: times (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 3A Required 3B Return on total assets Return On Total Assets Choose Numerator: 1 Choose Denominator: = Return On Total Assets = Return on total assets Current Year: 1 Year Ago: Required 3A Required 3B > (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 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
