Required information [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,200 88,600 111,500 10,550 277,000 $ 518,850 $ 36,250 63,500 82,800 9,300 249,500 $ 441,350 $ 38,400 50,000 52,000 4,100 225,000 $ 369,500 $ 129,200 98,000 161,500 130,150 $ 518,850 $ 74,750 100,750 161,500 104,350 $441,350 $ 50,000 83,400 161,500 74,600 $ 369,500 The company's income statements for the Current Year and 1 Year Ago, follow. 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 $ 775,000 $ 472,750 248,000 11,800 9,500 742,050 $ 32,950 1 Year Ago $ 610,000 $ 384,300 140,300 13,300 8,950 546,850 $ 63,150 $ 2.04 $ 3.91 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-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Compute profit margin ratio for the current year and one year ago. Numerator: Denominator: li Profit Margin Ratio 1 / / 1 11 Profit Margin Ratio Profit margin ratio % % = Current Year: 1 Year Ago: 11 Required 1A Required 1B Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin