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 Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 35,625 62,500 82,500 9,375 255,000 $ 445,000 $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 $ 129,900 98,500 163,500 131,100 $ 523,000 $ 75,250 101,500 163,500 104,750 $ 445,000 163,500 79,250 $ 377,500 For both the current year and one year ago, compute the following ratios: The company's income statements for the current year and 1 year ago, follow. 1 Year Ago $ 532,000 $ 345,500 134,980 For Year Ended December 31 Sales Cost of goods sold Other operating expenses expense Income tax expense Total costs and expenses Net income Current Year $ 673,500 $ 411,225 209,550 12,100 9,525 642,400 $ 31,100 8,845 502,625 $ 29,375 Earnings per share $ 1.90 $ 1.80 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 Required 2 Required 3A Required 3B Compute profit margin ratio for the current year and one year ago. Numerator: Profit Margin Ratio 1 Denominator: 1 II Profit Margin Ratio Profit margin ratio % Current Year: 1 11 = 1 Year Ago: 1 11 = % Required 1A Required 1B Required 2 Required 3A Required 3B Compute total asset turnover for the current year and one year ago. Numerator: Total Asset Turnover 1 Denominator: 1 = 11 Total Asset Turnover Total asset turnover 0 times 0 times Current Year: / 11 1 Year Ago: = Required 1A Required 1B Required 2 Required 3A Required 3B Compute return on total assets for the current year and one year ago. Return On Total Assets Numerator: 1 Denominator: = Return On Total Assets Current Year: 1 = Return on total assets 0 % 0 % 1 Year Ago