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Simon Companys year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 31,400 $ 35,250 $ 37,400

Simon Companys year-end balance sheets follow.

At December 31 Current Year 1 Year Ago 2 Years Ago
Assets
Cash $ 31,400 $ 35,250 $ 37,400
Accounts receivable, net 87,000 63,500 51,000
Merchandise inventory 110,500 82,800 54,000
Prepaid expenses 10,350 9,350 4,700
Plant assets, net 276,000 256,500 235,000
Total assets $ 515,250 $ 447,400 $ 382,100
Liabilities and Equity
Accounts payable $ 129,600 $ 75,000 $ 51,000
Long-term notes payable 98,000 99,750 81,600
Common stock, $10 par value 162,000 162,000 162,000
Retained earnings 125,650 110,650 87,500
Total liabilities and equity $ 515,250 $ 447,400 $ 382,100

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

For Year Ended December 31 Current Year 1 Year Ago
Sales $ 765,000 $ 550,000
Cost of goods sold $ 474,300 $ 352,000
Other operating expenses 237,150 132,000
Interest expense 12,100 13,200
Income tax expense 9,400 8,775
Total costs and expenses 732,950 505,975
Net income $ 32,050 $ 44,025
Earnings per share $ 1.98 $ 2.72

For both the Current Year and 1 Year Ago, compute the following ratios:

(1-a) Compute profit margin ratio for the current year and one year ago.

(1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago?

(2) Compute total asset turnover for the current year and one year ago.

(3-a) Compute return on total assets for the current year and one year ago.

(3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?

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