value: 2.40 points Simon Company's year-end balance sheets follow. At December 31 Assets Cash 2015 2014 2013 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 $ 24,499 $ 30,113 $30,445 71,005 51,147 42,250 89,275 66,222 43,223 8,052 7,595 3,383 194,499 235,243 213,952 $428,074 $369,029 $313,800 $108,722 $ 62,990 $41,836 81,283 82,330 69,350 162,500 162,500 162,500 75,569 61,209 40,114 $428,074 $369,029 $313,800 (1) Compute the current ratio for the year ended 2015, 2014, and 2013. Choose Numerator: 2015: 2014: 2013: Current Ratio Choose = Current Ratio Denominator: = Current ratio = to 1 = to 1 to 1 (2) Compute the acid-test ratio for the year ended 2015, 2014, and 2013. Acid-Test Ratio Choose Numerator: + 2015: + + 2014: + + 1 2013: + + Choose Denominator: = Acid-Test Ratio = Acid-test ratio = to 1 = to 1 = to 1 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets 2015 2014 2013 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 30,400 $ 36,500 $38,200 88,400 63,500 50,500 112,000 82,600 54,000 10,900 9,350 4,300 230,000 282,000 249,500 Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by 377,000 $523,700 $ 441,450 $ $128,400 $ 74,250 $50,400 mortgages on plant assets Common stock, $10 par value Retained earnings 97,500 101,000 81,400 160,500 160,500 160,500 137,300 105,700 84,700 377,000 Total liabilities and equity $523,700 $ 441,450 $ The company's income statements for the years ended December 31, 2015 and 2014, follow. For Year Ended 2015 2014 December 31 Sales $735,000 $580,000 Cost of goods $448,350 $365,400 sold Other operating 220,500 139,200 expenses Interest 11,800 13,000 expense Income taxes 9,500 8,975 Total costs and 526,575 690,150 expenses Net income $ 44,850 $53,425 Earnings per share $ 2.79 $ 3.33 Evaluate the company's efficiency and profitability by computing the following for 2015 and 2014. value: 2.40 points (1)Profit margin ratio. Choose Numerator: Profit Margin Ratio Choose Denominator: Profit Margin Ratio Profit margin ratio 2015 2014 % % Hints References eBook & Resources Hint #1 Check my work value: 2.40 points (2) Total asset turnover. 2015 2014 Total Asset Turnover Choose Numerator: Choose Denominator: = = Total Asset Turnover Total asset turnover times times (3) Return on total assets. Return On Total Assets Choose Numerator: 1 Choose Denominator: 2015 2014 Return On Total = Assets Return on total = assets = = % %