At December 31 Current Yr 1 Yr Ago 2 Yrs Ago 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 $ 31,100 $ 34,100 $ 37,100* 89,400 63,000 59,102 106,310 82,800 59,800 11,628 8,836 3,884 361,562 236,264 190, 111 $600,000 $425,000 $ 350,000 $146,412 $ 73,262 $ 44,814 112,800 100,683 78,124 162,500 162,500 162,500 178,288 88,555 64,562 $600,000 $425,000 $ 350,000 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 $780,000 $475,800 241,800 13,260 10, 140 741,000 $ 39,000 $ 2.40 1 Yr Ago $ 505,750 $328,738 127,955 11,632 7,586 475,911 $ 29,839 $ 1.84 Draw 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 $ 30.00 28.00 0.34 9.17 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 20. Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth? 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, Beturn On Common Stockholders' Equity Choose Numerator y Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders equity 2a. Assuming Simon's competitor has a price earnings ratio of 8, 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' (ity for each year. Return On Common Stockholders' Equity Choose Numerator: Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders' equity Current Year: 1 Year Ago Required Required 2 > 2. Price earnings Eptio on December 31 22. Assuming Simon's competitor has a price-earnings ratio of 8, 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 price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price:Earnings Ratio 1 Choose Denominator: Choose Numerator: Price-Earnings Ratio Price earnings ratio Current Year: 1 Year Ago: = For both the current year ano 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 8, which company has higher market expectations for future growth 3. Dividend yield Complete this question by enterijg your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth? Which company has higher market expectations for future growth? Dress 2. Price-eamings ratio on December 31 2a. Assuming Simon's competitor has a price earnings ratio of 8, which company has higher market expectations 3. Dividend yield Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the dividend yield for each year. (RosInd your answers to 2 decimal places.) Dividend Yield Choose Numerator: 1 Choose Denominator: 1 1 Current Year: Dividend Yield Dividend yield % 1 Year Ago 11 96
