The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31	Current Yr					1 Yr Ago			2 Yrs Ago
Assets
Cash		$	32,400			$	35,750		$	37,600
Accounts receivable, net			89,300				61,000			51,000
Merchandise inventory			112,500				81,000			52,500
Prepaid expenses			10,650				9,450			4,800
Plant assets, net			278,000				253,000			230,000
Total assets		$	522,850			$	440,200		$	375,900
Liabilities and Equity
Accounts payable		$	128,400			$	73,500		$	51,600
Long-term notes payable secured by mortgages on plant assets			95,500				100,250			82,400
Common stock, $10 par value			161,500				161,500			161,500
Retained earnings			137,450				104,950			80,400
Total liabilities and equity		$	522,850			$	440,200		$	375,900

The companys income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31	Current Yr						1 Yr Ago
Sales				$	765,000					$	570,000
Cost of goods sold	$	466,650					$	364,800
Other operating expenses		244,800						131,100
Interest expense		12,300						13,300
Income tax expense		9,600						8,825
Total costs and expenses					733,350						518,025
Net income				$	31,650					$	51,975
Earnings per share				$	1.96					$	3.22

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?

Profit Margin Ratio 1 Choose Denominator: Choose Numerator: Net income / Net sales Profit Margin Ratio Profit margin ratio 4.1 % Current Year: $ $ 31,650 / 51,975 / 765,000 = 570,000 = 1 Year Ago: $ $ 9.1 % Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin Worsened Total Asset Turnover Choose Numerator: / Choose Denominator: Total Asset Turnover / Total asset turnover Current Year: 1 = times 1 Year Ago: 1 times Return On Total Assets Choose Numerator: 1 Choose Denominator: = Return On Total Assets 1 = Return on total assets Current Year: / % 1 Year Ago: / 11 % 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