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 $ 30,600 88,000 112,000 10,550 282,000 $523,150 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 $ 36,500 $ 37,200 64,000 50,000 81,000 54,500 9,350 5,100 254,000 230,000 $444,850 $ 376,800 $129,200 $ 74,000 $ 51,600 97,500 162,500 133,950 $523,150 100,250 81,400 162,500 162,500 108,100 81,300 $444,850 $ 376,800 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 Earnings per share Current Yr $ 725,000 $ 449,500 224,750 12,100 9,350 695,700 $ 29, 300 1 Yr Ago $ 620,000 $396,800 155,000 13,100 8,875 573,775 $ 46,225 $ 2.84 $ 1.80 --L-Ili. .. V -- AV---A- Current ,000 1 Y 20,000 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 $725,000 $ 449,500 224,750 12,100 9,350 695,700 $ 29, 300 1 Yr Ago $ 620,000 $396,800 155,000 13,100 8,875 573,775 $ 46,225 Earnings per share $ 1.80 $ 2.84 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: = Profit Margin Ratio Profit margin ratio Current Year: 1 Year Ago