Simon Company's year-end balance sheets follow.

Current Year

1 Year Ago

2 Years Ago

At December 31

Assets

Cash

Accounts receivable, net

Merchandise inventory

Prepaid expenses

Plant assets, net

$ 31,000

89,900

112,000

10,700

276,000 $ 519,600

$ 36,000

63,000

80,600

9,450

249,000

$ 37,600 49,000

52,000

5,400

231,000

Total assets

$ 438,050

$375,000

Liabilities and Equity Accounts payable

Long-term notes payable Common stock, $10 par value

Retained earnings

Total liabilities and equity

$ 129,600

95,500

163,500

131,000 $ 519,600

$ 72,500

98,750

163,500

103,300

$ 51,400

82,200

163,500 77,900

$ 438,050

$ 375,000

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

Current Year

$ 765,000

For Year Ended December 31

Sales

Cost of goods sold

Other operating expenses Interest expense

Income tax expense

Total costs and expenses

$459,000

237,150

12,100

9,400

1 Year Ago

$580,000

$377,000

145,000

13,100

8,975

Net income

717,650

544,075

$ 47,350

Earnings per share

$ 35,925

$2.90

$2.20

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

Exercise 13-10 (Algo) Part 1 [Alternate Version]

(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?

Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3 [Alternate Version] [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. The company's income statements for the Current Year and 1 Year Ago, follow. Exercise 13-10 (Algo) Part 1 [Alternate Version] (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? Complete this question by entering your answers in the tabs below. Compute return on total assets for the current year and one year ago