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 pat value Retained earnings Total liabilities and equity $ 31,400 87,300 111,000 10,500 276,000 $516,200 $ 36,000 $37,600 61,000 49,500 82,600 54,500 9,450 4,700 255,500 234,000 $444,550 $ 380,300 $129,200 $ 74,750 $ 50,000 96,500 162,500 128,000 $516,200 99,500 80,600 162,500 162,500 107,800 87,200 $444,550 $ 380,300 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 $735,000 $448, 350 227,850 11,600 9,600 697.400 $ 37,600 1 Yr Ago $ 550,000 $346,500 126,500 13,400 8,725 495, 125 $ 54,875 2.31 $ 3.38 For both the Current Year and 1 Year Ago, compute the following ratios: a) Profit margin ratio. b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago? Required 1A Required 1B Profit margin ratio. Profit Margin Ratio Choose Denominator: Choose Numerator: = Profit Margin Ratio Profit margin ratio 1 Current Year: = 1 Year Ago: % Required 1B >