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[The following information applies to the questions displayed below.] Simon Companys year-end balance sheets follow.

At December 31	Current Year	1 Year Ago	2 Years Ago
Assets
Cash	$ 32,000	$ 35,750	$ 37,200
Accounts receivable, net	89,800	63,000	50,500
Merchandise inventory	112,000	81,200	53,000
Prepaid expenses	10,300	9,500	4,800
Plant assets, net	278,000	256,500	230,000
Total assets	$ 522,100	$ 445,950	$ 375,500
Liabilities and Equity
Accounts payable	$ 128,000	$ 74,500	$ 51,200
Long-term notes payable	95,000	100,000	84,000
Common stock, $10 par value	162,000	162,000	162,000
Retained earnings	137,100	109,450	78,300
Total liabilities and equity	$ 522,100	$ 445,950	$ 375,500

The companys income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31	Current Year		1 Year Ago
Sales		$ 745,000		$ 540,000
Cost of goods sold	$ 447,000		$ 340,200
Other operating expenses	230,950		129,600
Interest expense	12,000		13,400
Income tax expense	9,450		8,700
Total costs and expenses		699,400		491,900
Net income		$ 45,600		$ 48,100
Earnings per share		$ 2.81		$ 2.97

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?

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