Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Current Year 1 Year Ago 2 Years Ago Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable $ 517,050 $ 30,000 86,700 112,000 10,350 278,000 $ 35,500 61,500 80, 200 9,400 258,500 $ 445,100 $ 37,400 50,000 54,500 4,300 227,000 $ 373,200 $ 129,200 Long-term notes payable Common stock, $10 par value 96,000 161,000 $ 73,750 100, 750 Retained earnings Total liabilities and equity 130,850 $ 517,050 $ 445,100 161,000 109,600 $ 50,800 83,200 161,000 78,200 $ 373,200 $630,000 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 1 Year Ago Current Year $ 765,000 $ 474,300 237,150 $ 390,600 151, 200 12,600 8,750 733,050 $ 31,950 12,000 9,600 $ 1.98 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? 563,150 $66,850 $ 4.15