Simon Companys year-end balance sheets follow.

At December 31	Current Yr					1 Yr Ago			2 Yrs Ago
Assets
Cash		$	31,600			$	35,250		$	38,400
Accounts receivable, net			87,200				62,000			49,500
Merchandise inventory			112,500				81,600			54,500
Prepaid expenses			11,000				9,350			5,500
Plant assets, net			282,000				257,000			232,000
Total assets		$	524,300			$	445,200		$	379,900
Liabilities and Equity
Accounts payable		$	128,000			$	72,500		$	51,600
Long-term notes payable secured by mortgages on plant assets			95,500				100,250			80,600
Common stock, $10 par value			162,500				162,500			162,500
Retained earnings			138,300				109,950			85,200
Total liabilities and equity		$	524,300			$	445,200		$	379,900

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

For Year Ended December 31	Current Yr						1 Yr Ago
Sales				$	745,000					$	630,000
Cost of goods sold	$	432,100					$	396,900
Other operating expenses		230,950						144,900
Interest expense		11,500						13,200
Income tax expense		9,300						8,525
Total costs and expenses					683,850						563,525
Net income				$	61,150					$	66,475
Earnings per share				$	3.76					$	4.09

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 Profit margin ratio. Profit Margin Ratio 1 Choose Denominator: Choose Numerator: = Profit Margin Ratio Profit margin ratio Current Year: 1 Year Ago: / Required 1A Required 1B Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Return on total assets