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 $ 31,400 88,800 111,500 10,400 277,000 $519,100 $ 36,000 $ 37,600 62,500 49,500 82,000 53,500 9,450 5,400 251,000 233,000 $440,950 $ 379,000 $129,200 $ 74,500 $ 50,400 97,500 160,500 131,900 $519, 100 98,250 81,600 160,500 160,500 107,700 86,500 $440,950 $ 379,000 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 Current Yr $ 745,000 $439,550 230,950 12,400 9,550 692,450 $ 52,550 1 Yr Ago $ 560,000 $352,800 140,000 12,800 8,650 514,250 $ 45,750 $ 3.27 $ 2.85 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? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Profit margin ratio. Choose Numerator: Profit Margin Ratio 1 Choose Denominator: 1 II Profit Margin Ratio Profit margin ratio % % 1 = Current Year: 1 Year Ago: 1