Required information [The following information applies to the questions displayed below] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Connon stock, $10 par value Retained earnings Total liabilities and equity $ 36,896 186,935 133, 132 11,532 324,592 $ 613,087 $ 43,550 73,253 95,821 11,432 304,467 $ 528,523 $ 42,748 56,428 68,089 4,797 267,738 $ 431,800 $ 154,185 117,566 162,589 178,836 $ 613,087 $ 89,320 119, 129 162, see 157,574 $ 528,523 $ 55,858 96,382 162,500 117,860 $ 431,800 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 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 Year $ 797,013 $ 486,178 247,074 13,549 10,361 757,162 $ 39,851 $ 2.45 1 Year Ago $ 628,942 $ 480,812 159,122 14,466 9.434 591,834 $ 37,188 $ 2.28 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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Compute total asset tumover for the current year and one year ago. Total Asset Turnover Denominator: Numerator: = Total Asset Turnover Total asset turnover O times Current Year: 1 Year Ago: O times (3-a) Return on total assets. (3-6) 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 return on total assets for the current year and one year ago. Return On Total Assets Numerator: Denominator: Current assets Average total assets Current Year: 1 Year Ago: = = Return On Total Assets Return on total assets 024 04 = (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 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
