2 years ago Required information Use the following information for the Exercises below. (Algo) (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago Assets Cash $ 30,198 $ 34,946 Accounts receivable, net 87,523 63,626 Merchandise inventory 112,245 80,812 Prepaid expenses 9.628 9,266 Plant assets, net 272,239 252, 585 Total assets $ 511,833 $441,235 Liabilities and Equity Accounts payable $ 123,623 $ 73,077 Long-term notes payable 94,300 103,514 Common stock, $10 par value 163,500 162,500 Retained earnings 130, 410 102,144 Total liabilities and equity $ 511,833 $441,235 $ 37,516 51,012 54,344 4,210 228, 118 $ 375,200 $ 50,517 84,578 162,500 77.605 $375,200 For both the current year and one year ago, compute the following ratios: Required information The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cont of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Iarning per share Current Year $ 665,383 $405,884 206,269 11,312 8,650 632.115 $ 33,268 1 Year Ago $ 525,070 $ 341,296 132.843 12,022 7,876 494,092 $ 30,978 51.91 $ 2.05 Additional information about the company follows. 0.15 Common stock market price, December 31) Current Year $31.00 Common stock market price, December 31, 1 Year Ago 29.00 Annual cash dividends per share in Current Year 0.30 Annual cash dividends per whare 1 Year ago For both the current year and one year ago, compute the following ratios: 1. Return on equity 2. Dividend yield 30. Price-earings ratio on December 31 3b. Assuming Simon's competitor has a price-earnings ratio of 7 which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 Compute the return on equity for each year. Retum On Equity Numerator: Denominator: Return On Equity Return on equity 1 Current Year: 1 Year Ago: % Regurod 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Numerator Denominator Dividend Yield Dividend yield % Current Year: 1 Year Ago 1 * Required 1 Required JA > Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3A Required 38 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price sings Ballo Numerator Denominator Price Earnings Ratio Price-carnings ratio Current Year 1 Year Ago 1 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 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