Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago $ 35,625 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 98,500 163,500 131,100 $ 129,900 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity 62,500 82,500 9,375 255,000 $ 445,000 $ 75,250 101,500 163,500 104,750 $ 523,000 $ 445,000 $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Interest expense Income tax expense Other operating expenses Total costs and expenses Net income Current Year $ 673,500 $ 411,225 209,550 1 Year Ago $ 532,000 12,100 9,525 642,400 $ 31,100 $ 345,500 134,980 13,300 8,845 502,625 $ 29,375 Earnings per share $ 1.90 For both the Current Year and 1 Year Ago, compute the following ratios: $ 1.80 (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. Current Year: 1 Year Ago: Numerator: Profit Margin Ratio Denominator: < Required 1A Required 1B > = Profit margin ratio = % % Complete this question by entering your answers in the tabs below. Required 1A Required 1B Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Profit margin < Required 1A Required 1B > Improved Worsened