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 Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Y 1 Yr Ago 2 Yrs Ago $ 31,800 $ 35,625 $ 37,880 89,500 62,500 50,200 112,500 82,500 54,000 10,700 9,375 5,000 278,500 255,000 230,500 $523,000 $445,000 $377,500 $129,900 98,500 163,500 131, 100 $523,000 $ 75,250 $ 51,250 101,500 83,500 163,500 163,500 104,750 79,250 $445,000 $377,500 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Current Yr 1 Yr Ago Sales $673,500 $532,000 Cost of goods sold $411,225 $345,500 Other operating expenses 209,550 134,980 Interest expense 12,100 13,300 Income tax expense 9,525 8,845 Total costs and expenses 642,400 502,625 Net income $ 31,100 $ 29,375 Earnings per share $ 1.90 1.80 $ For both the Current Year and 1 Year Ago, compute the following ratios: Net income Earnings per share $ 31,100 $ 1.90 $ 29, 375 $ 1.80 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? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Profit margin ratio. Profit Margin Ratio 1 Choose Denominator: Net sales = Choose Numerator: Net income Profit Margin Ratio Profit margin ratio 0 % 1 Current Year: 1 Year Ago: V 0 % Required 18 > For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net Income Earnings per share Current Yr $673,500 $411,225 209,550 12, 100 9,525 642,400 $ 31,100 $ 1.90 1 Yr Ago $532,000 $345,500 134,980 13,300 8,845 502,625 $ 29,375 $ 1.80 For both the Current Year and 1 Year Ago, compute the following ratios: (2) Total asset turnover. Total Asset Tumover 1 Choose Denominator: Choose Numerator: Total Asset Turnover Total asset turnover times Current Year: 1 Yoar Ago: times Net income Earnings per share $ 31,100 $ 1.99 $ 29,375 $ 1.80 For both the Current Year and 1 Year Ago, compute the following ratios: (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? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Return on total assets. Return On Total Assets Choose Numerator: 1 Choose Denominator: Return On Total Assets Retum on total assets 01% 1 Current Year: 1 Year Ago: 1 0 % Required 30