round to two decimal places Requlred Informetlon The followi

round to two decimal places

Requlred Informetlon The following information applies to the questions displayed below Simon Company\'s year-end balance sheets follow. 2816 2815 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 $38,880 35,75e 37,88e 88,488 61,8ae 111,58e 82,888 55,83e 4, 788 278,880 251,588 231,98e $519,48e $448,58e $ 377,280 18,78e 9,45e $129, 28e 75,758 $ 51,48e mortgages on plant assets Common stock, $1e par Retained earnings Total liabilities and equity 95,58e 188,75e 81,48e 161,50e 161,588 161,58e 102,58e82,989 $519,48e $448,58e $ 377,280 value 133,200 The company\'s income statements for the years ended December 31, 2017 and 2016, follow. 2816 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income 2017 $785,88e 618,8ae $486, 78e 243,35e 11,688 9.488 $ 384, 386 146,488 13,18e 9,888 75 $ 33,95e $ 2.18 $ 57,28e $3.54 Earnings per share Evaluate the company\'s efficiency and profitability by computing the following for 2017 and 2016.

Solution

profit margin ratio

net income

sales

net income/sales

profit margin ratio

2017

33950

785000

33950/785000

4.32%

2016

57200

610000

57200/610000

9.38%

total asset turnover ratio

sales

average assets

sales/total average assets

2017

785000

479950

785000/479950

1.635587

2016

610000

408850

610000/408850

1.49199

average assets = (opening+closing)/2

2017

(519400+440500)/2

479950

2016

(440500+377200)/2

408850

return on total assets

net income

average assets

net income/average assets

2017

33950

479950

33950/479950

7.07%

2016

57200

408850

57200/408850

13.99%

profit margin ratio	net income	sales	net income/sales	profit margin ratio
2017	33950	785000	33950/785000	4.32%
2016	57200	610000	57200/610000	9.38%
total asset turnover ratio	sales	average assets	sales/total average assets
2017	785000	479950	785000/479950	1.635587
2016	610000	408850	610000/408850	1.49199
average assets = (opening+closing)/2
2017	(519400+440500)/2	479950
2016	(440500+377200)/2	408850
return on total assets	net income	average assets	net income/average assets
2017	33950	479950	33950/479950	7.07%
2016	57200	408850	57200/408850	13.99%