Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current Year 1 Year Ago 2 Years Ago $ 34,068 102,729 126,654 11,193 308,610 $ 583,254 $ 41,029 71,801 $ 41,079 53,698 58,343 92,089 10,664 287,222 $ 502,805 $ 85,824 113,332 162,500 141,149 Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings $ 148,135 111,845 162,500 160,774 Total liabilities and equity $ 583,254 $ 502,805 For both the current year and one year ago, compute the following ratios: 4,385 249,295 $ 406,800 $ 54,772 91,701 163,500 96,827 $ 406,800 Exercise 17-10 (Algo) Analyzing efficiency and profitability LO P3 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Current Year 1 Year Ago $ 758,230 $ 598,338 $ 462,520 $ 388,920 Exercise 17-10 (Algo) Analyzing efficiency and profitability LO P3 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Interest expense Other operating expenses Income tax expense Total costs and expenses Net income: Earnings per share Current Year $ 462,520 235,051 12,890 9,857 $ 758,230 720,318 $ 37,912 $ 2.33 1 Year Ago. $ 388,920 151,380 13,762 8,975 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. $ 598,338 563,037 $ 35,301 $2.17 (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 18 Required 2 Required 3A Required 38 (3-a) Return on total assets. 5 (3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Yea Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Compute profit margin ratio for the current year and one year ago. t ht nces Current Year: 1 Year Ago: Numerator: Profit Margin Ratio Denominator: 1 =Profit Margin Ratio " Profit margin ratio % (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 C Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin < Required 1A Required 2 > (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 versi Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Compute total asset turnover for the current year and one year ago. Current Year: 1 Year Ago: Total Asset Turnover Numerator: Denominator: Total Asset Turnover Total asset turnover times times < Required 1B Required 3A > 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. Current Year: 1 Year Ago: Numerator: Return On Total Assets Denominator: Return On Total Assets Return on total assets % % (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 Yea Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 38 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 < Required 3A Required 3B