Simon Companys year-end balance sheets follow.

At December 31	Current Yr					1 Yr Ago			2 Yrs Ago
Assets
Cash		$	31,000			$	35,750		$	37,800
Accounts receivable, net			88,400				63,000			50,500
Merchandise inventory			112,000				81,600			53,000
Prepaid expenses			10,800				9,500			4,000
Plant assets, net			279,000				257,500			232,000
Total assets		$	521,200			$	447,350		$	377,300
Liabilities and Equity
Accounts payable		$	128,800			$	74,250		$	51,000
Long-term notes payable secured by mortgages on plant assets			97,500				101,250			81,400
Common stock, $10 par value			161,500				161,500			161,500
Retained earnings			133,400				110,350			83,400
Total liabilities and equity		$	521,200			$	447,350		$	377,300

The companys income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31	Current Yr						1 Yr Ago
Sales				$	735,000					$	580,000
Cost of goods sold	$	463,050					$	377,000
Other operating expenses		227,850						139,200
Interest expense		12,000						12,800
Income tax expense		9,550						8,875
Total costs and expenses					712,450						537,875
Net income				$	22,550					$	42,125
Earnings per share				$	1.40					$	2.61

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?

(3-a) Times interest earned. (3-b) Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Times interest earned. Times Interest Earned Choose Numerator: 1 Choose Denominator: 1 11 Times Interest Earned Times interest earned times Current Year: 1 Year Ago: / 11 times (2) Total asset turnover. Total Asset Turnover Choose Denominator: Choose Numerator: = Total Asset Turnover Total asset turnover times Current Year: 1 Year Ago: = times (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 = Return on total assets 96 Current Year: 1 Year Ago: = 96 Required 3A Required 3B >