Homework: Financial Statement Analysis Assignment i Saved 15 Required information Part 3 of 3 [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. 2 At December 31 Current Year 1 Year Ago 2 Years Ago points Assets Cash $ 32, 200 $ 36, 250 $ 37,600 Accounts receivable, net 89, 800 63, 000 49,500 Merchandise inventory 111, 500 82, 006 54, 000 Prepaid expenses 10, 900 9 ,300 5,100 Book Plant assets, net 281, 000 251, 090 232,000 Total assets $ 525, 400 $ 441, 550 $ 378, 200 Liabilities and Equity Print Accounts payable $ 128, 400 $ 75, 750 $ 50,400 Long-term notes payable 95, 500 98 , 506 83,000 Common stock, $10 par value 162, 000 162, 006 162,060 Retained earnings 139, 500 105,306 82, 800 References Total liabilities and equity $ 525, 400 $ 441, 550 $ 378, 200 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 $ 765, 500 $ 550, 900 Cost of goods sold $ 466, 650 $ 341,000 Other operating expenses 237, 150 132, 000 Interest expense 12, 200 13, 400 Income tax expense 9,500 8,750 Total costs and expenses 725, 500 495, 150 Net income $ 39, 500 $ 54, 850 Earnings per share $ 2.44 $ 3.39 For both the Current Year and 1 Year Ago, compute the following ratios: (3-a) Compute return on total assets for the current year and one year ago. (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 3A Required 3B Compute return on total assets for the current year and one year ago. Return On Total Assets Numerator: Denominator: = Return On Total Assets = Return on total assets Current Year: % 1 Year Ago:Required 3A Required 38 Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago? Return on total assets