Required information Exercise 13-10 Analyzing efficiency and profitability LO P3 (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,000 87,200 113,000 10,650 276,000 $518,850 $ 35,750 $ 37,800 62,000 49,000 83,400 54,500 9,350 4,600 256,000 231,000 $446,500 $ 376,900 $129,600 $ 73,750 $ 51,200 96,500 162,000 130,750 $518,850 100,000 82,600 162,000 162,000 110,750 81,100 $446,500 $ 376,900 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 Yr $715,000 $414,700 228,800 11,800 9,550 664,850 $ 50, 150 1 Yr Ago $ 610,000 $390,400 152,500 13,200 8,750 564,850 $ 45, 150 $ 2.79 $ 3.10 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 Part 2 (2) Total asset turnover. Total Asset Turnover Choose Numerator: 1 Choose Denominator: III Total Asset Turnover 1 = Total asset turnover Current Year: 1 11 times 1 Year Ago: 1 times Exercise 13-10 Part 3 (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 3A Required 3B Return on total assets Return On Total Assets Choose Numerator: 1 Choose Denominator: Return On Total Assets II Return on total assets % Current Year: 1 II 1 Year Ago: 1 = %