Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,000 88,000 112,000 10,450 278,000 $519,450 $ 35,250 $ 38,400 63,000 49,500 83,400 53,500 9,400 5,400 248,000 226,000 $439,050 $ 372,800 $129,600 $ 74,500 $ 50, 800 95,500 163,500 130,850 $519,450 101,750 81,400 163,500 163,500 99,300 77,100 $439,050 $ 372,800 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 Current Yr $715,000 $429,000 221,650 12,200 9,550 672,400 $ 42,600 1 Yr Ago $ 630,000 $403, 200 157.500 12,500 8,875 582,075 $ 47,925 Earnings per share $ 2.61 $ 2.93 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 Part 1 (1-a) Profit margin ratio. (1-6) Did profit margin 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 1B Profit margin ratio. Profit Margin Ratio 1 Choose Denominator: Choose Numerator: = Profit Margin Ratio Profit margin ratio 1 = Current Year: / % 1 Year Ago: 1 % Required information Exercise 13-10 Analyzing efficiency and profitability LO P3 (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,000 88,000 112,000 10, 450 278,000 $519,450 $ 35,250 $ 38, 400 63,000 49,500 83,400 53,500 9,400 5, 400 248,000 226,000 $439,050 $ 372,800 $129,600 $ 74,500 $ 50, 800 95,500 163,500 130,850 $519,450 101,750 81,400 163,500 163,500 99, 300 77,100 $439,050 $ 372,800 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 Yr $ 715,000 $ 429,000 221,650 12,200 9,550 672,400 $ 42,600 1 Yr Ago $ 630,000 $ 403, 200 157,500 12,500 8,875 582, 075 $ 47,925 $ 2.61 $ 2.93 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 Part 2 (2) Total asset turnover. Choose Numerator: Total Asset Turnover I Choose Denominator: 1 Total Asset Turnover Total asset turnover Current Year: 1 times 1 Year Ago: 1 times Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,000 88,000 112,000 10,450 278,000 $519,450 $ 35,250 $ 38, 400 63,000 49,500 83,400 53,500 9,400 5,400 248,000 226,000 $439,050 $ 372,800 $129,600 95,500 163,500 130,850 $519,450 $ 74,500 $ 50,800 101,750 81,400 163,500 163,500 99, 300 77,100 $439,050 $ 372,800 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 Yr $ 715,000 $ 429,000 221,650 12,200 9,550 672,400 $ 42,600 2.61 1 Yr Ago $ 630,000 $403,200 157,500 12,500 8,875 582,075 $ 47,925 $ 2.93 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 Part 3 (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 3A Required 3B Return on total assets Return On Total Assets Choose Numerator: 1 Choose Denominator: Return On Total Assets = Return on total assets Current Year: 1 Year Ago: 1 Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $53,900; total assets, $199,400; common stock, $84,000; and retained earnings, $43,051.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 453,600 Cost of goods sold 296,950 Gross profit 156,650 Operating expenses 99,600 Interest expense 3,800 Income before taxes 53, 250 Income tax expense 21,451 Net income $ 31,799 $ Assets Cash Short-term investments Accounts receivable, net Merchandise inventory CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity $ 10,000 Accounts payable 9,000 Accrued wages payable 34,200 Income taxes payable 42,150 Long-term note payable, secured by mortgage on plant assets 3,100 Common stock 149,300 Retained earnings $ 247,750 Total liabilities and equity 18,500 3,800 4,200 62,400 Prepaid expenses Plant assets, net Total assets 84,000 74,850 $ 247,750 Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.)