Exercise 13-11 Analyzing profitability LO P3 Simon Company's year-end balance sheets follow. 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 Current Yr 1 Yr Ago 2 Yrs Ago $ 31,400 $ 34,200 $ 36,500 89,500 63,600 50,300 63,799 84,000 59,600 10,505 9,545 4,264 374,796 258,655 229,336 $570,000 $450,000 $380,000 $144,769 $ 76,050 $ 49,157 108,232 105,570 84,820 162,500 162,500 162,500 154,499 105,880 83,523 $570,000 $450,000 $380,000 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales $ 535,500 Current Yr 1 Yr Ago $741,000 Cost of goods sold $452,010 $348,075 Other operating expenses 229,710 135,482 Interest expense 12,597 12,317 Income tax expense 9,633 8,033 Total costs and expenses 703,950 Net income $ 37,050 503,907 $ 31,593 Earnings per share $ 2.28 $ 1.94 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 0.40 0.20