[The following information applies to the questions displayed below.j Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current Year 1 Year Ago 2 Years Ago $ 33,783 97,913 125,594 10,989 310,097 58,411 $ 39,888 71,898 $ 39,900 56,491 89,474 10,785 286,555 $ 498,600 $ 578,376 Accounts payable $ 144,016 Long-term notes payable. Common stock, $10 par value 109,822 163,500 161,038 $ 81,735 113,531 163,500 139,834 Total liabilities and equity $ 578,376 $ 498,600 Retained earnings For both the current year and one year ago, compute the following ratios: 4,616 256,082 $ 415,500 $ 54,298 91,826 163,500 105,876 $ 415,500 Exercise 17-10 (Algo) Analyzing efficiency and profitability LO P3 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Interest expense Other operating expenses Income tax expense Total costs and expenses Net income Earnings per share 1 Year Ago Current Year $ 751,889 $ 458,652 233,086 12,782 9,775 $ 385,667 150,114 13,647 8,900 714,295 $ 37,594 $ 2.31 $ 593,334 558,328 $ 35,006 $ 2.15 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?