Refer to Simon Companys financial information in Exercises 17-7 and 17-9. Evaluate the companys efficiency and profitability

Refer to Simon Company’s financial information in Exercises 17-7 and 17-9. Evaluate the company’s efficiency and profitability by computing the following for 2014 and 2013:

In Exercise 17-7, Simon Company’s year-end balance sheets follow. Express the balance sheets in common-size percents. Round amounts to the nearest one- tenth of a percent.

In Exercise 17-9, The company’s income statements for the years ended December 31, 2014 and 2013 follow. Assume that all sales are on credit and then compute:

(1) Profit margin ratio— percent rounded to one decimal,
(2) Total asset turnover— rounded to one decimal,
(3) Return on total assets— percent rounded to one decimal. Comment on these ratioresults.

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At December 31 2012 Assets $31800 35,625 37,800 Merchandise inventory2500 82,500 54,000 10.700 9375 5000 9.375 5,000 Plant assets, net... Total assets. Liabilities and Equity Accounts payable Long-term notes payable secured by 2 mortgages on plant assets ...98,500 01,500 83,500 ....63,500 Recained earnings131.100 104.750 131,100 04,750 79,250 $523,000 $445,000 $377,500 Total liabilities and equity 2014 For Year Ended December 3 Sales Cost of goods sold Other operating expenses.... 2013 $673.500 $532,000 $345,500 134.980 13,300 8,845 $411225 209,550 9,525 Income taxes. Total costs and expenses Net income 642.400 $31.100 $ 1.90 502,625 $ 29,375 $1.80