Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 32,000 88,300 111,000 10,950 281,000 $523,250 $ 35,500 $ 37,800 63,500 50,500 81,400 55,000 9,300 4,900 257,500 227,000 $447,200 $ 375,200 $129,200 $ 72,500 $ 50,800 95,500 161,000 137,550 $523, 250 100,000 83,000 161,000 161,000 113,700 80,400 $447,200 $ 375,200 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 Yr $735,000 $441,000 227,850 11,600 9,550 690,000 $ 45,000 1 Yr Ago $ 540,000 $345,600 129,600 12,700 8,875 496,775 $ 43, 225 2.80 2.68 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? Profit margin ratio. Choose Numerator: Profit Margin Ratio 1 Choose Denominator: 1 = = Profit Margin Ratio Profit margin ratio % % = Current Year: 1 Year Ago: 1 11