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 $ 26,653 75,748 94,296 8,250 233, 640 $ 438,587 $ 30,247 51,874 71,346 7,781 216,844 $ 378,092 $ 29,981 39,167 44,307 3,264 189, 181 $ 305,900 $ 111,392 84,928 163,500 78,767 $ 438,587 $ 65,175 85,222 162,500 65,195 $ 378,092 $ 39,571 66,928 162,500 36,901 $ 305,900 Exercise 13-10 (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 Other operating expenses Interest expense Income tax expense Total costs and expenses Current Year $ 570,163 $ 347,799 176,751 9,693 7,412 541,655 $ 28,508 1 Year Ago $ 449,929 $ 292,454 113,832 10,348 6,749 423,383 $ 26,546 Net income Earnings per share $ 1.75 $ 1.63 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? Required 1A Required 1B Required 2 Required 3A Required 3B Compute profit margin ratio for the current year and one year ago. Profit Margin Ratio Numerator: 1 Denominator: = / = Profit Margin Ratio Profit margin ratio % Current Year: / II 1 Year Ago: / II % Required 1A Required 1B > 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 Total Asset Turnover Numerator: / Denominator: = Total Asset Turnover 1 = Total asset turnover Current Year: 1 II times 1 Year Ago: 1 II times