[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow.

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 32,657	$ 37,410	$ 38,976
Accounts receivable, net	94,650	64,799	50,929
Merchandise inventory	116,625	90,041	56,464
Prepaid expenses	10,727	9,920	4,417
Plant assets, net	298,851	274,994	242,914
Total assets	$ 553,510	$ 477,164	$ 393,700
Liabilities and Equity
Accounts payable	$ 140,580	$ 79,028	$ 53,527
Long-term notes payable	106,141	109,748	86,138
Common stock, $10 par value	162,500	162,500	163,500
Retained earnings	144,289	125,888	90,535
Total liabilities and equity	$ 553,510	$ 477,164	$ 393,700

The companys income statements for the current year and 1 year ago, follow.

For Year Ended December 31	Current Year		1 Year Ago
Sales		$ 719,563		$ 567,825
Cost of goods sold	$ 438,933		$ 369,086
Other operating expenses	223,065		143,660
Interest expense	12,233		13,060
Income tax expense	9,354		8,517
Total costs and expenses		683,585		534,323
Net income		$ 35,978		$ 33,502
Earnings per share		$ 2.21		$ 2.06

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?

Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,657 94,650 116,625 10,727 298,851 $ 553, 510 $ 37,410 64,799 90,041 9,920 274,994 $ 477,164 $ 38,976 50,929 56,464 4,417 242,914 $ 393,700 $ 140,580 106, 141 162,500 144, 289 $ 553, 510 $ 79,028 109,748 162,500 125,888 $ 477,164 $ 53,527 86, 138 163,500 90,535 $ 393,700 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 Earnings per share Current Year $ 719,563 $ 438,933 223,065 12,233 9,354 683,585 $ 35,978 1 Year Ago $ 567,825 $ 369,086 143,660 13,060 8,517 534,323 $ 33,502 $ 2.21 $ 2.06 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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Compute profit margin ratio for the current year and one year ago. Profit Margin Ratio 1 Numerator: Denominator: = Profit Margin Ratio Profit margin ratio 1 Current Year: / 1 Year Ago: 1 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Compute total asset turnover for the current year and one year ago. Total Asset Turnover Numerator: Denominator: = Total Asset Turnover 1 Total asset turnover Current Year: / times 1 Year Ago: / = times Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Compute return on total assets for the current year and one year ago. Return On Total Assets 1 Denominator: Numerator: = Return On Total Assets 1 Return on total assets Current Year: 1 = % 1 Year Ago: / = % Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 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