Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

multiple step question Current At December 31 1 Yr Ago 2 Yrs Ago $ 31,800 $ 34,700 $ 36,000 88,800 62,900 58,300 99,533 83,100 53,100

multiple step question
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Current At December 31 1 Yr Ago 2 Yrs Ago $ 31,800 $ 34,700 $ 36,000 88,800 62,900 58,300 99,533 83,100 53,100 11,434 10,187 3,590 358,433 299,113 169,010 $590,000 $490,000 $ 320,000 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 $142,503 $ 81,154 $ 41,818 188,702 114,954 70,720 162,500 162,500 162,500 176,295 131,392 44,962 $590,000 $490,000 $ 320,000 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 $767,000 $467,870 237,770 13,039 9,971 728,650 $ 38,350 1 Yr Ago $ 583, 100 $379, 015 147,524 13,411 8,747 548, 697 $ 34,403 $ 2.36 $ 2.12 Additional information about the company follows Common stock market price, December 31, Current Year Connon stock market price, December 31, 1 Year ago Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Apo $ 29.00 27.00 0.32 0.16 For both the Current Year and 1 Year Ago compute the following ration 1. Return on common stockholders' equity 2. Price earnings ratio on December 31 20. 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 2a Required 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholsters' Equity Choose Numerator: Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders' equity Current Year: 1 Year Ago: Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the price-earrings ratio for each year. (Round your answers to 2 decimal places.) Price Earnings Ratio Choose Denominator: Choose Numerator: Price Earnings Ratio Price-earnings ratio Current Year: 1 1 Year Ago: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Which company has higher market expectations for future growth?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions