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 $ 30,200 87,400 112,000 10,550 280,000 $520,150 $ 35,250 $ 38,200 61,500 50,000 82,800 54,000 9,350 4,700 250,500 230,000 $439,400 $ 376,900 $129,600 $ 73,500 $ 50,800 97,500 164,000 129,050 $520,150 99, 250 83,000 164,000 164,000 102,650 79,100 $439,400 $ 376,900 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 $421,850 221,650 11,700 9,550 664,750 $ 50,250 $ 3.06 1 Yr Ago $ 550,000 $352,000 132,000 12,800 8,575 505,375 $ 44,625 $ 2.72 Earnings per share 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? 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 Current Year: 1 Year Ago: Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin (2) Total asset turnover. Total Asset Turnover Choose Denominator: Choose Numerator: = Total Asset Turnover Total asset turnover times times Current Year: 1 Year Ago: (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 3 Return on total assets Return On Total Assets Choose Numerator: Choose Denominator: Return On Total Assets Return on total assets Current Year: 1 Year Ago: Required 3A Required 3B Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Return on total assets
