Required information

[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31	2017			2016			2015
Assets
Cash	$	30,000		$	35,000		$	37,200
Accounts receivable, net		87,600			64,000			50,000
Merchandise inventory		112,500			82,800			53,500
Prepaid expenses		10,700			9,250			4,700
Plant assets, net		281,000			259,000			228,000
Total assets	$	521,800		$	450,050		$	373,400
Liabilities and Equity
Accounts payable	$	129,200		$	73,000		$	50,200
Long-term notes payable secured by mortgages on plant assets		95,000			101,250			82,600
Common stock, $10 par value		160,500			160,500			160,500
Retained earnings		137,100			115,300			80,100
Total liabilities and equity	$	521,800		$	450,050		$	373,400

The companys income statements for the years ended December 31, 2017 and 2016, follow.

For Year Ended December 31	2017						2016
Sales				$	705,000					$	610,000
Cost of goods sold	$	415,950					$	378,200
Other operating expenses		204,450						140,300
Interest expense		11,700						13,300
Income taxes		9,350						8,975
Total costs and expenses					641,450						540,775
Net income				$	63,550					$	69,225
Earnings per share				$	3.96					$	4.31

Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016.

Required information

[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31	2017			2016			2015
Assets
Cash	$	30,000		$	35,000		$	37,200
Accounts receivable, net		87,600			64,000			50,000
Merchandise inventory		112,500			82,800			53,500
Prepaid expenses		10,700			9,250			4,700
Plant assets, net		281,000			259,000			228,000
Total assets	$	521,800		$	450,050		$	373,400
Liabilities and Equity
Accounts payable	$	129,200		$	73,000		$	50,200
Long-term notes payable secured by mortgages on plant assets		95,000			101,250			82,600
Common stock, $10 par value		160,500			160,500			160,500
Retained earnings		137,100			115,300			80,100
Total liabilities and equity	$	521,800		$	450,050		$	373,400

The companys income statements for the years ended December 31, 2017 and 2016, follow.

For Year Ended December 31	2017						2016
Sales				$	705,000					$	610,000
Cost of goods sold	$	415,950					$	378,200
Other operating expenses		204,450						140,300
Interest expense		11,700						13,300
Income taxes		9,350						8,975
Total costs and expenses					641,450						540,775
Net income				$	63,550					$	69,225
Earnings per share				$	3.96					$	4.31

Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016

(1) Profit margin ratio.

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Item21

Item 21 Part 2 of 3 3 points

Required information

[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31	2017			2016			2015
Assets
Cash	$	30,000		$	35,000		$	37,200
Accounts receivable, net		87,600			64,000			50,000
Merchandise inventory		112,500			82,800			53,500
Prepaid expenses		10,700			9,250			4,700
Plant assets, net		281,000			259,000			228,000
Total assets	$	521,800		$	450,050		$	373,400
Liabilities and Equity
Accounts payable	$	129,200		$	73,000		$	50,200
Long-term notes payable secured by mortgages on plant assets		95,000			101,250			82,600
Common stock, $10 par value		160,500			160,500			160,500
Retained earnings		137,100			115,300			80,100
Total liabilities and equity	$	521,800		$	450,050		$	373,400

The companys income statements for the years ended December 31, 2017 and 2016, follow.

For Year Ended December 31	2017						2016
Sales				$	705,000					$	610,000
Cost of goods sold	$	415,950					$	378,200
Other operating expenses		204,450						140,300
Interest expense		11,700						13,300
Income taxes		9,350						8,975
Total costs and expenses					641,450						540,775
Net income				$	63,550					$	69,225
Earnings per share				$	3.96					$	4.31

Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016.

(1) Profit margin ratio

(2) Total asset turnover.

(3) Return on total assets.