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. 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 26,544 80,898 100, 717 8,989 246,665 $ 463,813 $ 31,987 57,097 73,231 8,229 229,295 $ 399,839 $ 32,987 43,982 46,846 3,556 202,529 $ 329,900 $ 118,954 88,941 163,500 92,418 $ 463,813 $ 69,600 92,883 162,500 74,856 $ 399,839 $ 43,111 72,179 163,500 51, 110 $ 329,900 Required information The company's income statements for the current year and 1 year ago, follow, For Year Ended December 31 Current Year 1 Year Ago Sales $502,957 $ 475,805 Cost of goods sold $367,884 $ 309,275 Other operating expenses 186,917 120,379 Interest expense 10.250 10,944 Income tax expense 7,838 7.137 Total costs and expenses 572,809 447,735 Net Income $ 30,148 $ 28,073 Earnings per share $ 1.86 $1.73 For both the Current Year and 1 Year Ago, compute the following ratios (1-a) Profit margin ratio (1-6) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover (3-0) Retum 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? Me GEW Prov 4 of 4 ili Next Required 1A Required 18 Required 2 Required 3A Required 38 Compute profit margin ratio for the current year and one year ago Prolit Margin Ratio Numerator: Denominator: Current Year: 1 Year Ago: 1 Prolit Margin Ratio Profit margin ratio % %6 RIA Required 18 > Did profit margin improve or worsen in the Current Year versus 1 Year Ago? nts Profit margin eBook Hint Print Pororencos Required 1A Required 18 Required 2 Required 3A Required 3B Compute total asset turnover for the current year and one year ago. Total Asset Turnover Denominator: Numerator: = Total Asset Turnover Total asset turnover Current Year: times 1 Year Ago: times Required information Port 2012 Required 1A Required: 18 Required 2 Required Required 38 25 Compute return on total assets for the current year and one year ago Numerator: Belum On Total Assets Denominator Curl Year YA Return On Total Assets Return on total assets (Required 2 Required 38 > Me Required information Required LA Required 18 Required 2 Required 3A Requlid 3B Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year AS Rotum on total assets