Requirea information 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. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 30,217 88,473 113,485 10,227 280, 208 $ 522,610 $ 37,123 61,812 81,689 9, 272 260, 639 $ 450, 526 $ 38,685 50, 264 54,400 4,088 235,863 $ 383,180 $ 127,527 99,233 162,500 133,350 $ 75,378 103,621 162,500 109,027 $ 450, 526 $ 51,581 84,665 163,580 83,354 $ 383,100 $ 522,610 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 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Year $ 679,393 $ 414,430 219,612 11,550 8,832 645,424 $ 33,969 1 Year Ago $ 536, 126 $ 348,482 135, 640 12,331 8,842 504,495 $ 31,631 Earnings per share $ 2.09 $ 1.95 For both the Current Year and 1 Year Ago, compute the following ratlos: (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? The company's Income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 679,393 $ 414,430 219,612 11,550 8,832 645,424 $ 33,969 1 Year Ago $ 536, 126 $ 348,482 135,640 12,331 8,042 584,495 $ 31,631 $ 2.09 $1.95 For both the Current Year and 1 Year Ago, compute the following ratlos: (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 Age Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2 Required 3A Required 38 Compute profit margin ratio for the current year and one year ago. Profit Margin Ratio Numerator: 1 Denominator: Profit Margin Ratio Profit margin ratio 1 = Current Year: 1 = 96 1 Year Ago: 1 = % Required 1A Required 1B > 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? Complete this question by entering your answers in the tabs below. Required 1A Required 18 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 3B Compute total asset turnover for the current year and one year ago. Total Asset Turnover Numerator: Denominator: Total Asset Turnover III Total asset turnover Current Year: times 1 Year Ago: = times Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Compute return on total assets for the current year and one year ago. Return On Total Assets Denominator: Numerator: Return On Total Assets Return on total assets = Current Year: = 96 1 Year Ago: 96 Required 2 Required 3B > Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 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 Required 3A Required 3B