14 At December 31 Current Yr 1 Yr Ago 2 Yrs Ago 0.71 points $ 31,900 $ 34,700 $ 37,200 88,900 64,600 57,400 29,889 84,900 58,200 10,562 9,104 3,734 383,749 231,696 193,466 $545,000 $425,000 $ 350,000 Skipped 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 $132,991 $ 71,825 $ 46,662 eBook 99,386 96,772 75,029 162,500 162,500 162,500 150,123 93,903 65,809 $ 545,000 $425,000 $ 350,000 001 Hint The company's income statements for the Current Year and 1 Year Ago, follow. Print ur References 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 $ 708,500 $ 432,185 219,635 12,045 9,211 673,076 $ 35,424 $ 2.18 1 Yr Ago $ 505,750 $328,738 127,955 11,632 7,586 475,911 $ 29,839 $ 1.84 Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago $ 32.00 30.00 0.34 0.17 For both the Current Year and 1 Year Ago, compute the following ratios: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 2a. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? 3. Dividend yield. Required 1 Required 2 Required 2a Required 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholders' Equity Choose Numerator: 1 Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders' equity 1 Current Year: 1 Year Ago: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Choose Numerator: Price-Earnings Ratio 1 Choose Denominator: 1 Price-Earnings Ratio Price-earnings ratio 11 Current Year: 1 Year Ago: = Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Which company has higher market expectations for future growth?
