12 Part 1 of 3 2.14 points Required information (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 31,200 $ 36,250 $ 37,800 Accounts receivable, net BB, 500 62,500 49,500 Merchandise inventory 112,000 B3,000 52,000 Prepaid expenses 10,900 9,400 4,000 Plant assets, net 282,000 258,500 232,000 Total assets $ 524, 600 $ 449,650 $ 375, 300 Liabilities and Equity Accounts payable $ 129,200 $ 73,500 $ 50,800 Long-term notes payable 98,000 100,000 B0,600 Common stock, $10 par value 162,000 162,000 162,000 Retained earnings 135, 400 114, 150 B1,900 Total liabilities and equity $ 524,600 $ 449,650 $ 375,300 eBook Hint Print The company's income statements for the Current Year and 1 Year Ago, follow. References For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 705,000 $ 437,100 218,550 12,000 9,550 677,200 $ 27,800 $ 1.72 1 Year ago $ 570,000 $ 353,400 142,500 13,300 8,775 517,975 $ 52,025 $ 3.21 For both the Current Year and 1 Year Ago, compute the following ratios: (1-a) Compute profit margin ratio for the current year and one year ago. (1-1) Did profit margin improve or worsen in the Current Year versus 1 Year Ago