Check my work mode : This shows what is correct or incorrect for the work you h Exercise 13-11 Analyzing profitability LO P3 Simon Company's year-end balance sheets follow. At December 31 1 Yr Ago 2 Yrs Ago Asset 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 $ 34,900 $ 37, 400 88,900 63,300 59,900 59,30683,90053,000 10,1369,776 4,290 360,558283, 124 235, 410 $550,000 $475,000 $390,000 $ 134,211 $ 80,275 $ 51,995 103, 400 110,343 85,328 162,500 162,500 162,500 149,889 121,882 90,177 $550,000 $475,000 $390,000 The company's income statements for the Current Year and 1 Year Ago, follow For Year Ended December 3 Sales Cost of goods sold Current Yr $715,000 $436,150 Yr Ago $ 565,250 $367,413 Prey 6 of 7 Check my work mode : This shows what is correct or incorrect for the work you ha The company's income statements for the Current Year and 1 Year Ago, follow. Ye Ago $ 565,250 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 $715,000 $436,150 221,650 12, 155 9,295 679,250 $ 35,750 $ 12.20 $367 413 143,008 13,001 8,479 531,901 $ 33,349 $ 2.05 Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Aga Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago $32.00 30200 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 FU WA WILAU MANALU AU The Wall Street Jo... FIR ECO Via TRM Management320... O WebCOMM 2.0 GRL ECON 21 ter 13 0 Help Save & E Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. ASSE Required 1 Required 2 Required 2a Required 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholders' Equity Return On Common Stockholders' Equity Return on common stockholders' equity Choose Numerator: Choose Denominator: Average common stockholders Preferred dividends Net income ! ders equity $ 35,750 0 $ 596,771 $ 33,349 - OS 537,059 = - = 33 6.0 % Current Year: 1 Year Ago: 6.2 % Required 2 > OD 26 DSSPALIS (2 A OP = OE
