Required Information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 2018 2017 2016 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 $ 31,000 88, 200 112, 000 10, 650 278,000 $519,850 $ 36,500 62,500 8 1, 200 9,450 256,500 $446,150 $ 37, 800 49,500 53,000 5,300 228,000 $373,600 $129, 600 $ 72,500 $ 50, 400 97, 000 160,500 132, 750 $519,850 99, 750 160,500 113, 400 $446, 150 83,200 160,500 79,500 $373, 600 The company's income statements for the years ended December 31, 2018 and 2017, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2018 $ 775,000 $ 488, 250 217,000 12, 200 9,550 727,000 $ 48,000 $ 2.99 2017 $550,000 $ 352,000 132,000 12,800 8,625 505, 425 $ 44,575 $ 2.78 Evaluate the company's efficiency and profitability by computing the following for 2018 and 2017 (1) Profit margin ratio. Profit Margin Ratio Choose Denominator: Choose Numerator: - Profit Margin Ratio Profit margin ratio 2018: 2017: 1 1 (2) Total asset turnover. Choose Numerator: Total Asset Turnover Choose Denominator: Total Asset Turnover Total asset turnover times times 2018: 2017: (3) Return on total assets. Return On Total Assets Choose Denominator: Choose Numerator: = Return On Total Assets Return on total assets 2018: 2017