! 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 $ 31,800 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity 89,500 112,500 10,700 278,500 $ 35,625 62,500 82,500 9,375 255,000 $ 523,000 $ 445,000 Accounts payable $ 129,900 Long-term notes payable Common stock, $10 par value Retained earnings 98,500 163,500 131,100 Total liabilities and equity $ 523,000 $ 445,000 $ 75,250 101,500 163,500 104,750 For both the current year and one year ago, compute the following ratios: $ 37,800 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 The company's income statements for the current year and 1 year ago, follow. For Year Ended December 31 Sales Cost of goods sold Interest expense Income tax expense Other operating expenses Total costs and expenses Net income Current Year $ 673,500 $ 411,225 209,550 12,100 9,525 642,400 $ 31,100 $ 1.90 1 Year Ago $ 345,500 134,980 13,300 8,845 $ 532,000 502,625 $ 29,375 Earnings per share 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 $ 30.00 28.00 0.29 0.24 For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 3a. Price-earnings ratio on December 31. $ 1.80 3b. Assuming Simon's competitor has a price-earnings ratio of 10, which company has higher market expectations for future growth?