8 Exercise 13-11 Analyzing profitability LO P3 125 points Simon Company's year-end balance sheets follow Current Yr 1 Yr Ago 2 Yrs Ago eBook 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 $ 31,200 $ 34,500 $ 36,500 89,500 63,300 51,200 109,635 82,700 53, see 9,969 9,193 3,590 289,696 235, 307 175,210 $530,000 $425,000 5 320,000 Hint Print $130,650 $ 73,262 5 41,818 96,651 99,705 70,720 162,500 162,500 162,500 140,199 89,533 44,962 $530,000 $425,000 $ 320,000 References The company's income statements for the Current Year and 1 Year Ago follow $ 505,750 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 $689,000 $420,290 213,590 11,713 8,957 654,550 $ 34,450 5 2.12 $328,738 127,955 11.632 7,586 475,911 $ 29,839 1.64 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 $31.00 29.00 0.26 0.13 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 20. Assuming Simon's competitor has a price earnings ratio of 8, which company has higher market expectations for future growth? 3. Dividend yield Hint Print Complete this question by entering your answers in the tabs below. Denis Required Required 2 Required 2 Required 3 Compute the return on common stockholders' equity for each year Return On Common Stockholders Choose Nuor Choose Danceito Return On Com Stockholders Rumon stockholders Current Year 1 Year Agol Required) per ABO Bock 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 20. Assuming Simon's competitor has a price-earnings ratio of 8 which company has higher market expectations for future growth? 3. Dividend yield Print Complete this question by entering your answers in the tabs below. Rerences Required 1 Required 2 Required 2 Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places) Choose Numerator Price Earnings Ratio Choose Denominator: Price Earnings Ratio Price camins ratio Current Year: 1 Year Age: - = Annual ca 1 per Share Year A Hin For both the Current Year and 1 Year Ago, compute the following ratios Prim 1. Return on common stockholders' equity 2. Price-earnings ratio on December 31 20. Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth? 3. Dividend yield References Complete this question by entering your answers in the tobs below. Required 1 Required 2 Required 2a Required Assuming Simon's competitor has a price-earnings ratio of which company has higher market expectations for future growth? Which company has higher market expectations for future growth? (Required 2 Required 3 > Book 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 20. Assuming Simon's competitor has a price earnings ratio of 8, which company has higher market expectations for future growth? 3. Dividend yield Hist Print Complete this question by entering your answers in the tabs below. Perences Required 1 Required 2 Required 2a Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Choose Numerator: Dividend Yield Choose Denominator Dividend Yield Dividend yield Current Year 1 Year ago