[The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 2015 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 $ 31,000 $ 35,000 $ 37,200 88,800 63,000 50,000 111,000 80,800 53,000 10,550 9.250 4,100 277.000 253,000 231,000 $518,350 $441,050 $375,300 $128,000 $ 72,250 $ 50,800 96,500 102,000 83,200 161,000 161,000 161,000 132,850 105,800 80,300 $518,350 $441,050 $375,300 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses 2017 $ 715,000 $429,000 200,200 2016 $ 600,000 $372,000 144,000 The company's income statements for the years ended December 31, 2017 and 2016, follow. 2017 $ 715,000 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income $ 429,000 200,200 11,200 9,450 2016 $ 600,000 $ 372,000 144,000 13,300 8,925 538, 225 $ 61,775 649,850 $ 65, 150 Earnings per share $ 4.05 $ 3.84 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. (1) Profit margin ratio Choose Numerator: Net income Profit Margin Ratio 1 Choose Denominator: Net sales 65,150 / 61,775 ! = Profit Margin Ratio Profit margin ratio 2017 2016 $