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 $ 30,800 89,700 111,000 10,850 279,000 $521,350 $ 35,500 $ 37,000 63,500 51,000 80,200 55,000 9,300 4,600 259,000 234,000 $447,500 $ 381,600 $129,200 $ 72,500 $ 50,800 97,500 162,000 132,650 $521,350 101,500 81,600 162,000 162,000 111,500 87,200 $447,500 $ 381,600 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 $765,000 $ 459,000 237,150 11,100 9,500 716,750 $ 48,250 1 Yr Ago $ 630,000 $396,900 151,200 12,600 8,650 569,350 $ 60,650 $ 3.74 $ 2.98 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 1 Current Year: 1 Year Ago: i = Required 1A Required 1B > (2) Total asset turnover. Total Asset Turnover 1 Choose Denominator: Choose Numerator: - 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 >