Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago $ 30,600 $ 36,000 $ 38,600 87,800 61,000 49,500 111,000 83,600 53,000 10,850 9,300 4,800 280,000 254,500 228,000 $520,250 $444,400 $373,900 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 $128,000 $ 74,750 $ 50,800 96,000 163,000 133,250 $520, 250 101,500 80,200 163,000 163,000 105, 150 79,900 $444,400 $373,900 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $550,000 $346,500 For Year Ended Current Yr December 31 Sales $765,000 Cost of goods $451,350 sold Other operating 237, 150 expenses Interest expense 11,500 Income tax 9,350 expense Total costs and 709,350 expenses Net income $ 55,650 Earnings per $ 3.41 share 132,000 12,600 8,750 499,850 $ 50, 150 $ 3.08 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 Part 1 (1-a) Profit margin ratio. (1-b) 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 Required 1A 1B Profit margin ratio. Profit Margin Ratio Choose Numerator: I Choose Denominator: Profit Margin Ratio Profit margin ratio / 1 % Current Year: 1 Year Ago: / % Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago $ 30,600 87,800 111,000 10,850 280,000 $520,250 $ 36,000 $ 38,600 61,000 49,500 83,600 53,000 9, 300 4,800 254,500 228,000 $444,400 $373,900 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 $128,000 $ 74,750 $ 50,800 96,000 101,500 80,200 163,000 163,000 163,000 133,250 105, 150 79,900 $520,250 $444,400 $373,900 The company's income statements for the Current Year and 1 Year Ago, follow. 1 Yr Ago $550,000 $346,500 For Year Ended Current Yr December 31 Sales $765,000 Cost of goods $451,350 sold Other operating 237, 150 expenses Interest expense 11,500 Income tax 9,350 expense Total costs and 709, 350 expenses Net income $ 55,650 Earnings per $ 3.41 share 132,000 12,600 8,750 499,850 $ 50, 150 $ 3.08 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 Part 1 (1-a) Profit margin ratio. (1-b) 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 Required 1A 1B Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin
