Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Cash Current Year 1 Year Ago 2 Years Ago Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 25,676 75,183 $ 30,941 $ 31,270 55,229 96,458 8,439 242,886 70,835 8,203 221,552 $ 386,760 $ 448,642 $ 110,595 82,658 163,500 91,889 $ 448,642 $ 386,760 $ 64,055 88,065 163,500 71,140 For both the current year and one year ago, compute the following ratios: 41,693 44,851 3,652 200,834 $ 322,300 $ 43,394 69,804 163,500 45,602 $ 322,300 Exercise 13-10 (Algo) Analyzing efficiency and profitability LO P3 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Current Year $ 583,235 Cost of goods sold Other operating expenses Interest expense $355,773 180,803 9,915 Income tax expense 7,582 Total costs and expenses Net income Earnings per share 554,073 $ 29,162 $ 1.79 $460,244 1 Year Ago $ 299,159 116,442 10,586 6,904 433,091 $ 27,153 $ 1.67 For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Profit margin ratio. (1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? (2) Total asset turnover. (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? Compute profit margin ratio for the current year and one year ago. Current Year: 1 Year Ago: Current Year: 1 Year Ago: Current Year: 1 Year Ago: Numerator: Profit Margin Ratio Denominator: Profit Margin Ratio =Profit margin ratio % % Total Asset Turnover Numerator: Denominator: Total Asset Turnover Total asset turnover times times Return On Total Assets Numerator: Denominator: = Return On Total Assets = Return on total assets % = %