Required information

[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31	Current Yr					1 Yr Ago			2 Yrs Ago
Assets
Cash		$	30,600			$	35,750		$	37,600
Accounts receivable, net			87,200				63,500			50,500
Merchandise inventory			110,500				81,600			53,500
Prepaid expenses			10,450				9,300			4,700
Plant assets, net			278,000				257,500			232,000
Total assets		$	516,750			$	447,650		$	378,300
Liabilities and Equity
Accounts payable		$	129,200			$	72,750		$	50,800
Long-term notes payable secured by mortgages on plant assets			97,000				101,500			80,800
Common stock, $10 par value			160,500				160,500			160,500
Retained earnings			130,050				112,900			86,200
Total liabilities and equity		$	516,750			$	447,650		$	378,300

The companys income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31	Current Yr						1 Yr Ago
Sales				$	765,000					$	550,000
Cost of goods sold	$	474,300					$	346,500
Other operating expenses		244,800						132,000
Interest expense		12,200						13,200
Income tax expense		9,450						8,775
Total costs and expenses					740,750						500,475
Net income				$	24,250					$	49,525
Earnings per share				$	1.51					$	3.09

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?