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 $ 30,800 87,500 113,000 10,900 280,000 $522,200 $ 35,500 $ 38,000 62,000 50,500 80,600 54,000 9,450 4,300 252,000 235,000 $439,550 $ 381,800 $129,600 $ 73,250 $ 50,000 98,000 164,000 130,600 $522,200 101,500 81,000 164,000 164,000 100, 800 86,800 $439,550 $ 381,800 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 Yr $715,000 $421,850 221,650 12,300 9,600 665,400 $ 49,600 1 Yr Ago $570,000 $353,400 131, 100 12,800 8,750 506,050 $ 63,950 Earnings per share $ 3.02 $ 3.90 For both the Current Year and 1 Year Ago, compute the following ratios: Exercise 13-10 Part 1 (1-a) Profit margin ratio. (1-b) Did profit margin 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 1B Profit margin ratio. Profit Margin Ratio | Choose Denominator: Choose Numerator: 1 = Profit Margin Ratio Profit margin ratio % Current Year: 1 1 Year Ago: - = % Exercise 13-10 Part 2 (2) Total asset turnover. Total Asset Turnover Choose Numerator: Choose Denominator: = Total Asset Turnover / Total asset turnover Current Year: 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 Return on total assets Current Year: % 1 Year Ago: %