Required information

[The following information applies to the questions displayed below.]

Simon Company’s year-end balance sheets follow.

At December 31 Current Yr 1 Yr Ago 2 Yrs Ago
Assets
Cash $ 32,200 $ 35,250 $ 38,600
Accounts receivable, net 86,800 63,500 50,000
Merchandise inventory 111,500 81,800 54,500
Prepaid expenses 10,400 9,350 4,600
Plant assets, net
279,000

253,000 231,000
Total assets $ 519,900 $ 442,900 $ 378,700
Liabilities and Equity
Accounts payable $ 130,000 $ 72,000 $ 50,600
Long-term notes payable secured by
mortgages on plant assets 96,000 101,000 82,800
Common stock, $10 par value 160,000 160,000 160,000
Retained earnings 133,900 109,900 85,300
Total liabilities and equity $ 519,900 $ 442,900 $ 378,700

The company’s income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31 Current Yr 1 Yr Ago
Sales $ 715,000 $ 590,000
Cost of goods sold $ 421,850 $ 377,600
Other operating expenses 221,650 141,600
Interest expense 11,600 13,000
Income tax expense 9,300 8,800
Total costs and expenses 664,400 541,000
Net income $ 50,600 $ 49,000
Earnings per share $ 3.16 $ 3.06

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?