! Required Information [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 $ 36,400 103,388 131,317 11,488 334,354 $ 616,947 $ 43, 399 73,715 97,409 11,057 306,271 $ 531,851 $ 43,026 55,664 62,325 4,875 264,410 $ 438,380 $ 156,692 113,666 163,500 183,089 $ 616,947 $ 88,984 121, 122 162, 5ee 159, 265 $ 531,851 $ 55,664 95,096 162,580 117,640 $ 439,380 For both the current year and one year ago, compute the following ratlos: 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 Current Year $ 892,831 $ 489, 239 248,630 13,635 19,426 761,930 $ 40,101 1 Year Ago $ 632,903 $ 411,387 160, 124 14,557 9,494 595,562 $ 37, 341 Earnings per share $ 2.47 $ 2.30 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 $ 32.00 30.ee 2.32 0.16 For both the current year and one year ago, compute the following ratlos: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 6, which company has higher market expectations for future growth? 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 6, 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 Return On Equity Numerator: 1 Denominator: Preferred dividends Average common stockholders' equity 01/ Net income 11 = Return on equity Current Year: 0 %6 1 Year Ago: 1 = 0 %6 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 6, 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 dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Numerator: = 1 Denominator: 1 Market price per share Accounts receivable, net = 11 Dividend Yield Dividend yield 0 % Current Year: = 1 Year Ago 1 11 0 % For both the current year and one year ago, compute the following ratlos: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 6, 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 price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio 1 Denominator: Numerator: Price-Earnings Ratio Price-earnings ratio Accounts receivable, net 1 = Current Year: 1 0 1 Year Ago: 1 0 For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yleld. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 6, 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 Assuming Simon's competitor has a price-earnings ratio of 6, which company has higher market expectations for future growth? Which company has higher market expectations for future growth
