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 $ 28,797 83,461 103,877 9,180 267,692 $ 493, 007 $ 33,320 60, 691 79,412 8,925 242,658 $ 425,006 $36, 136 48,659 50,806 3,936 221,863 $ 361,400 $ 122,759 90,832 163,500 115,916 $493,007 $ 71,826 98,729 162,500 91,951 $ 425,006 $ 46,751 79,071 163,500 72,078 361,400 For both the current year and one year ago, compute the following ratios: Exercise 17-10 (Algo) Analyzing efficiency and profitability LO P3 The company's income statements for the current year and 1 year ago, follow, For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 640,989 $ 390,954 198,682 10,895 8,332 608,863 $ 32,046 $ 1.97 1 Year ago $ 505,757 5328,742 127,957 11,632 7,586 475,917 $.29,840 $ 1.84 Required information For both the Current Year and 1 Year Ago, compute the following ratios: (1-0) Profit margin ratio (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset tumover (3-0) 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? Complete this question by entering your answers in the tabs below. Required IA Required 10 Required 2 Required JA Required 38 Compute profit margin ratio for the current year and one year ago Profit Margin Ratio Denominator Numerator Pront Margin Ratio Probit margin ratio Current Year 1 Year Ago RELA Required 18 > Required information For both the Current Year and 1 Year Ago, compute the following ratlost (1-a) Profit margin ratio. (1-1) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover (3-6) 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? Complete this question by entering your answers in the tabs below. Required 1A Required 10 Required 2 Required JA Required 38 Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin Required information For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-1) 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? Complete this question by entering your answers in the tabs below. Required 1A Required 15 Required 2 Required Required 3B Compute total asset turnover for the current year and one year ago Total Asset Turnover Denominator Numerator Total Asset Turnover Total asset turnover Current Year: times 1 Year Ago times Required information For both the Current Year and 1 Year Ago, compute the following ratios: (1-0) Profit margin ratio. (1-1) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover (3-0) 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? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 Required 3A Required 30 Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Roturn on total assets
