8 Exercise 13-11 Analyzing profitability LO P3 Simon Company's year-end balance sheets follow 22 Ints Current 1 Yr Ago 2 Yrs Ago At December 31 Yr eBook Hint $ 31,100 $ 34,500 $ 38,000 88, 400 64,900 54,100 39,556 82,000 50,600 10,271 10,290 4,264 360,673 298, 310 233,036 $530,000 $490,000 $ 380,000 Print References 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 $134,609 $ 82,810 $ 51,665 100,636 110,446 162,500 162,500 132 255 134) 244 $530,000 $490,000 82,300 162,500 83,535 380,000 The company's income statements for the Current Year and 1 Year Ago follow. 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 $689,000 $420,290 213,590 11,713 8,957 654,550 $ 34,450 1 Yr Ago $ 583, 100 $379,015 147,524 13,411 8,747 548,697 $ 34,403 2.12 2.12 $ ces 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 $ 33.00 31.00 0.36 0.18 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 7, which company has highern 1. Return on common stocknolders equity 2. Price earnings ratio on December 31 20. Assuming Simon's competitor has a price earnings ratio of 7, which company has higher market expectations for future 3. Dividend yield Complete this question by entering your answers in the tabs below. 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: Choose Denominator: Average common Net Income Preferred dividends stockholders' equity Current Year: $ 34.450 0 0 1 1 Year Ago: $ 34.403 - + 1 Return On Common Stockholders' Equity Return on common stockholders equity 0 % 01% Required 2 > Requieu Compute the price earnings ratio for each year. (Round your answers to 2 decimal places.) Price Farnings Ratio Choose Denominator: Choose Numerator: Price-Earnings Ratio Price-earnings ratio 0 Current Year: 1 Year Ago: 0 Complete this question by entering Required 3 Requirza Required 1 Required 2 Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market e growth? Which company has higher market expectations for future growth? eBook Required 1 Required 2 Required 2a Required Hint Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Print References Dividend Yield 1 Choose Denominator Choose Numerator: Dividend Yield Dividend yield 01% Current Year: 0 % 1 Year Ago