Required information Exercise 13-10 Efficiency and profitability analysis LO P3 The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow 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 2017 2016 2015 $ 31,000 36,000 37,000 86,600 63,000 50,500 112,500 82,400 52,500 4,300 279,000 248,000 234,000 $519,800 $438,900 $378,300 10,700 9,500 $128,800 75,750 51,200 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 97,500 99,500 83,800 160,500 160,500 160,500 82,800 $519,800 $438,900 $378,300 133,000 103,150 The company's income statements for the years ended December 31, 2017 and 2016, follow For Year Ended December 31 Sales Cost of goods sold Other operating expenses nterest expense Income taxes Total costs and expenses Net income 2017 2016 $785,000 $560,000 $463,150 227,650 11,900 9,400 $352,800 134,400 12,800 8,800 712,100 $ 72,900 $4.54 508,800 $ 51,200 $3.19 Earnings per share Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016 Exercise 13-10 Part 1 (1) Profit margin ratio. Profit Margin Ratio Choose Denominator: Choose Numerator: Profit Margin Ratio Profit margin ratio 2017 2016 Exercise 13-10 Part 2 (2) Total asset turnover. Total Asset Turnover Choose Numerator: IChoose Denominator: Total Asset Turnover Total asset turnover 2017 times times 2016 Exercise 13-10 Part 3 (3) Return on total assets. Return On Total Assets Choose Numerator: Choose Denominator: Return On Total Assets Return on total asset:s 2017 2016