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Simon Company’s year-end balance sheets follow.

       

 At December 31  2014  2013  2012
 Assets         
 Cash $30,200 $35,500 $37,600  
 Accounts receivable, net  87,400  63,500  49,500  
 Merchandise inventory  111,500  82,800  53,000  
 Prepaid expenses  10,800  9,425  4,400  
 Plant assets, net  282,000  258,000  225,000  
   

 

 

 Total assets $521,900 $449,225 $369,500  
   



 



 



 Liabilities and Equity         
 Accounts payable $128,400 $75,500 $50,200  
 Long-term notes payable secured by
  mortgages on plant assets
  95,000  102,000  82,400  
 Common stock, $10 par value  164,000  164,000  164,000  
 Retained earnings  134,500  107,725  72,900  
   

 

 

 Total liabilities and equity $521,900 $449,225 $369,500  
   



 



 




    

The company’s income statements for the years ended December 31, 2014 and 2013, follow.

     

 For Year Ended December 3120142013
  Sales   $705,000    $540,000  
  Cost of goods sold$430,050    $340,200   
  Other operating expenses 204,450     129,600   
  Interest expense 12,000     12,700   
  Income taxes 9,550     8,500   
 

    

   
  Total costs and expenses    656,050     491,000  
    

    

  Net income   $48,950    $49,000  
    



    



  Earnings per share   $2.98    $2.99  
    



    




      
Evaluate the company's efficiency and profitability by computing the following for 2014 and 2013.

(1) Profit margin ratio.

(2) Total asset turnover.

(3) Return on total assets.

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