[The following information applies to the questions displayed below.) 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 Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity Current Yr 1 Yr Ago 2 Yrs Ago $ 31,200 $ 36,000 $ 37,400 88,400 63,500 50,000 112,500 83,400 53,000 10,700 9,300 5,200 282,000 258,500 226,000 $524,800 $450,700 $ 371,600 $129,600 $ 73,250 $ 51,400 97,000 160,500 137,700 $524,800 98,500 80,400 160,500 160,500 118,450 79, 300 $450,700 $ 371, 600 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 $447,000 230,950 11,100 9,550 698,600 $ 46,400 $ 2.89 1 Yr Ago $ 550,000 $352,000 126,500 13,500 8,700 500, 700 $ 49,300 $ 3.07 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. Profit Margin Ratio Choose Numerator: / Choose Denominator: Profit Margin Ratio Profit margin ratio Current Year: % 1 Year Ago: / II %