Exercise 17-11 (Algo) Analyzing profitability LO P3

! Required information Use the following information for the Exercises below. (Algo) (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 27,086 80,090 99,701 8,635 248, 212 $ 463,724 $ 31,661 56,526 72,477 8,311 230,787 $ 399,762 $ 32,314 43,085 46,827 3,776 218,498 $ 336,500 $ 115,467 85,437 163,500 99.320 $ 463,724 $ 66,209 92,365 162,500 78,188 $ 399,762 $ 43,974 73,623 162,500 56,43 $336,500 For both the current year and one year ago, compute the following ratios Exercise 17-11 (Algo) Analyzing profitability LO P3 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 Year $ 602,841 $ 367,733 186,881 10,248 7,837 572,699 $ 30,142 $ 1.85 1 Year Ago $ 475,717 $ 309,216 120,356 10,941 7,136 447,649 $ 28,068 Los 1.73 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 $31.00 29.00 0.26 0.10 For both the current year and one year ago, compute the following ratios: Additional information about the company follows. Common stock market price, December 31, Current Year $31.00 Common stock market price, December 31, 1 Year ago 29.00 Annual cash dividends per share in Current Year 0.20 Annual cash dividends per share 1 Year Ago 0.10 For both the current year and one year ago, compute the following ratios 1. Return on equity 2. Dividend yield 30. Price earnings ratio on December 31 3b. Assuming Simon's competitor has a price-eamings ratio of 7 which company has higher market expectations for future growth Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 Compute the return on equity for each year, Return On Equity Numerator Preferred dividends Denominator Return On Equity Return on equity Current Year: 1 Year Ago Required 2) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Nurnerator: Denominator: Dividend Yield Dividend yield Current Year: 1 Year Ago % Complete this question by entering your answers in the tabs below, Required 1 Required 2 Required 3A Required 38 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places:) Price Eamogs Ratio Numerator 1 Denominator: Price Earnings Ratio Price-earnings ratio Current Year 1 1 Year Ago: