Exercise 13-11 Analyzing profitability LO P3 Simon Company's year-end balance sheets follow. At December 31 Assets Current Yr 1 Yr Ago 2 Yrs Ago 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 $31,200 $ 35,000 $ 36,300, 88,300 63,900 50,700 16,156 84,300 50,700 11,448 9,639 3,777 437,896 257,161 198,523 $585,000 $450,000 $340,000 $150,035 $ 75,289 $ 46,226 107,780 105,570 162,500 162,500 164,685 106,641 76,643 162,500 54,631 Total liabilities and equity nces $585,000 $450,000 $ 340,000 The company's income statements for the Current Year and 1 Year Ago, follow For Year Ended December 31 Sales Cost of goods sold. Current Yel $760,500 1 Yr Aga $348,075 135,482 12,317 $ 535,500 Other operating expenses 235755 Interest expense 12,929 Income tax expense 9,887 8,033 Total costs and expenses 222.476 538,024 Net income Earnings per share 5 2.34 503 907 $31,593 51.94 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 1.3 0.19 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. 28. Assuming Simon's competitor has a price-earnings ratio of 7, 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 Za Required 3 Required 1 Required 2 Required 2a Required 3 Compute the return on common stockholders' equity for each year. Current Year 1 Year Ago Return On Common Stockholders Equity Choose Numerator: Choose Denominator Required 2 >> Return On Common Stockholders' Equity Return on common stockholders' equity Current Year, 1 Year Ago Choose Numerator Price Earnings Ratio Choose Denominator: Price-Earnings Ratio Price-earnings ratio < Required 1 Required 2a > Current Year: 1 Year Agol Choose Numerator: Dividend Yield Choose Denominator: Dividend Yield Dividend yield