Required information Exercise 17-10 Efficiency and profitability analysis LO P3 (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. 2017 2016 2015 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 $ 32,200 $ 36,250 $ 37,800 88,200 61,500 51,000 110,500 82,600 52,500 10,750 9,250 4,800 279,000 256,500 229,000 $520,650 $ 446,100 $375, 100 $ 129,600 $ 75,250 $ 50,000 97,000 100,500 82,400 161,500 161,500 161,500 132,550 108,850 81,200 $520,650 $ 446,100 $375,100 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 Interest expense Income taxes Total costs and expenses 2017 $ 735,000 $ 433,650 213,150 12,000 9,400 668,200 $ 66,800 2016 $ 590,000 $365,800 141,600 13,500 8,625 529,525 $ 60,475 Net income Earnings per share $ 4.14 $ 3.74 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2016. Exercise 17-10 Part 1 (1) Profit margin ratio. Profit Margin Ratio Choose Numerator: 1 Choose Denominator: Profit Margin Ratio Profit margin ratio 1 2017 1 0 % 2016 1 0 % (2) Total asset turnover. Choose Numerator: Total Asset Turnover 1 Choose Denominator: 1 II Total Asset Turnover Total asset turnover II 2017 1 = 0 times 2016 1 0 times (3) Return on total assets. Return On Total Assets 1 Choose Denominator: Choose Numerator: Return On Total Assets Return on total assets 1 2017 / % 2016 / %