Question
[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 2015 2014 2013 Assets Cash $ 31,000
[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow. At December 31 2015 2014 2013 Assets Cash $ 31,000 $ 36,250 $ 37,600 Accounts receivable, net 88,100 63,000 50,000 Merchandise inventory 110,000 83,000 52,500 Prepaid expenses 10,450 9,300 4,800 Plant assets, net 281,000 253,000 226,000 Total assets $ 520,550 $ 444,550 $ 370,900 Liabilities and Equity Accounts payable $ 128,800 $ 75,250 $ 50,200 Long-term notes payable secured by mortgages on plant assets 95,000 100,000 80,600 Common stock, $10 par value 160,500 160,500 160,500 Retained earnings 136,250 108,800 79,600 Total liabilities and equity $ 520,550 $ 444,550 $ 370,900 The companys income statements for the years ended December 31, 2015 and 2014, follow. For Year Ended December 31 2015 2014 Sales $ 765,000 $ 620,000 Cost of goods sold $ 459,000 $ 390,600 Other operating expenses 221,850 148,800 Interest expense 12,100 13,300 Income taxes 9,300 8,775 Total costs and expenses 702,250 561,475 Net income $ 62,750 $ 58,525 Earnings per share $ 3.91 $ 3.65 Evaluate the company's efficiency and profitability by computing the following for 2015 and 2014.
1. Profit Margin Ratio
2. Total Asset Turnover
3. Return on Total Assets
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