Use the following information for the Exercises below. (Algo) (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 $ 28,270 $ 32,054 $ 35,455 Accounts receivable, net 82,756 57,251 45,896 Merchandise inventory 100,959 74,889 49,867 Prepaid expenses 9,286 8,501 3,863 Plant assets, net 257,888 240, 373 212,619 Total assets $ 479, 159 $ 413,068 $ 347,700 Liabilities and Equity Accounts payable $ 119,311 $ 69,808 $ 46,814 Long-term notes payable 90,983 93, 106 78,379 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 105,365 86,654 59,007 Total liabilities and equity $ 479, 159 $ 413,068 $ 347,700 For both the current year and one year ago, compute the following ratios: Exercise 13-10 (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 Current Year 1 Year Ago Sales $ 622,987 $ 491,551 Cost of goods sold $ 379,973 $ 319,588 Other operating expenses 193, 101 124,362 Interest expense 10,589 11,306 Income tax expense 8,098 7,373 Total costs and expenses 591,761 462,549 Net income $ 31,146 $ 29,002 Earnings per share $ 1.92 $ 1.78 For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio (1-1) 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 18 Required 2 Required 3A Required 3B Compute profit margin ratio for the current year and one year ago Profit Margin Ratio Denominator: Numerator: Profit Margin Ratio Profit margin ratio 1 Current Year: 1 Year Ago: 1 11 % Required 1A Required 18 > 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 18 Required 2 Required 3A Required 38 Compute return on total assets for the current year and one year ago Return On Total Assets 1 Denominator: Numerator: Return On Total Assets = Return on total assets % Current Year: 1 Year Ago: % Required 1A Required 1B Required 2 Required 3A Required 3B Based on return on total assets, did Simon's operating efficiency improve or v Return on total assets
