Simon Companys year-end balance sheets follow.

At December 31	Current Yr					1 Yr Ago			2 Yrs Ago
Assets
Cash		$	31,400			$	35,500		$	37,800
Accounts receivable, net			88,400				62,000			51,000
Merchandise inventory			111,000				83,200			53,000
Prepaid expenses			10,950				9,400			5,400
Plant assets, net			278,000				250,000			227,000
Total assets		$	519,750			$	440,100		$	374,200
Liabilities and Equity
Accounts payable		$	128,800			$	74,000		$	50,800
Long-term notes payable			98,000				98,750			83,400
Common stock, $10 par value			162,000				162,000			162,000
Retained earnings			130,950				105,350			78,000
Total liabilities and equity		$	519,750			$	440,100		$	374,200

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

For Year Ended December 31	Current Yr						1 Yr Ago
Sales				$	765,000					$	550,000
Cost of goods sold	$	451,350					$	346,500
Other operating expenses		244,800						137,500
Interest expense		11,300						12,900
Income tax expense		9,400						8,700
Total costs and expenses					716,850						505,600
Net income				$	48,150					$	44,400
Earnings per share				$	2.97					$	2.74

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

Required 1A Required 1B Profit margin ratio. Profit Margin Ratio Choose Denominator: Choose Numerator: = Profit Margin Ratio Profit margin ratio 1 = 1 Current Year: 1 Year Ago: 1 96 (2) Total asset turnover. Total Asset Turnover Choose Numerator: 1 Choose Denominator: Total Asset Turnover Total asset turnover = Current Year: 1 = times 1 Year Ago: 1 = times (3-0) 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 38 Return on total assets. Return On Total Assets 1 Choose Denominator Choose Numerator: = Return On Total Assets = Return on total assets 96 Current Year: 1 Year Ago: