[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash. $ 30,400 $ 35,250 $ 37,200 Accounts receivable, net Merchandise inventory. 51,000 87,500 63,500 111,500 80,600 52,000 Prepaid expenses 10,800 9,300 5,300 Plant assets, net 281,000 258,000 234,000 Total assets $521,200 $446,650 $379,500 Liabilities and Equity Accounts payable $130,000 $ 75,500 $50,800 Long-term notes payable secured by mortgages on plant assets 97,000 98,500 82,600 160,000 160,000 160,000 Common stock, $10 par value Retained earnings 134,200 112,650 86,100 Total liabilities and equity $521,200 $446,650 $379,500 The company's income statements for the years ended December 31, 2017 and 2016, follow. 2017 2016 For Year Ended December 31 Sales. $725,000 $ 550,000 Cost of goods sold $449,500 $352,000 126,500 Other operating expenses 210,250 Interest expense 11,800 9,300 13,400 8,750 Income taxes 680,850 500, 650 Total costs and expenses Net income $ 44,150 $ 49,350 $ 2.76 Earnings per share $ 3.08 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Income taxes 9,300 Total costs and expenses: 680,850 500,650 Net income $ 44,150 $ 49,350 Earnings per share $ 2.76 $ 3.08 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Exercise 17-10 Part 1 (1) Profit margin ratio. Profit Margin Ratio /Choose Denominator: Profit Margin Ratio 1 Profit margin ratio 7 % % 2017 2016 8,750 Choose Numerator: 11 = = Exercise 17-10 Part 2 (2) Total asset turnover. Choose Numerator: 2017 2016 Total Asset Turnover / Choose Denominator: 1 1 = Total Asset Turnover = Total asset turnover = times times 11 11 11 Exercise 17-10 Part 3 (3) Return on total assets. Choose Numerator: 2017 2016 Return On Total Assets / Choose Denominator: 11 = 11 Return On Total Assets Return on total assets %