Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current Year 1 Year Ago 2 Years Ago $ 35,250 $ 30,400 88,800 113,000 10,950 279,000 $ 522,150 64,000 80,000 9,358 254,088 $ 442,600 Accounts payable $ 128,000 Long-term notes payable Common stock, $18 par value Retained earnings 96,000 162,500 135,650 $ 73,758 98,500 162,500 107,850 Total liabilities and equity $ 522,150 $ 442,600 $ 37,289 51,000 52,000 4,900 233,000 $ 378,100 $ 51,200 84,000 162,500 80,400 $ 378,100 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 Current Year $ 448,350 227,850 12,300 9.308 1 Year Ago $ 735,000 $ 620,000 $ 384,400 148,800 12,800 8,558 697,800 $ 37,200 554,558 Total costs and expenses Net income Earnings per share $2.29 For both the Current Year and 1 Year Ago, compute the following ratios: $ 65,450 $ 4.83 (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? 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 1B > Profit Margin Ratio = Profit margin ratio 56 96