Simon Company's year-end balance sheets follow.

At December 31Current Yr1Yr Ago2 Yrs Ago

Assets

Cash$32,200$36,250$38,400

Accounts receivable, net88,70062,00050,000

Merchandise inventory112,50082,00053,500

Prepaid expenses10,8009,3504,200

Plant assets, net280,000248,500227,000

Total assets$524,200$438,100$373,100

Liabilities and Equity

Accounts payable$129,200$73,000$50,000

Long-term notes payable secured by

mortgages on plant assets97,50099,00082,600

Common stock, $10 par value162,500162,500162,500

Retained earnings135,000103,60078,000

Total liabilities and equity$524,200$438,100$373,100

The company's income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31Current Yr1 Yr Ago

Sales$735,000$580,000

Cost of goods sold$433,650$359,600

Other operating expenses235,200139,200

Interest expense11,40012,700

Income tax expense9,5508,675

Total costs and expenses689,800520,175

Net income$45,200$59,825

Earnings per share$2.78$3.68

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?