Required information [The following information applies to the questions displayed below.] 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 Current Year 1 Year Ago 2 Years Ago $ 26,850 74,738 $ 31,385 53,837 $ 32,373 95,906 8,561 244,527 73,297 7,994 221,920 $ 388,433 For both the current year and one year ago, compute the following ratios: 42,728 47,841 3,561 203,797 $ 330,300 $ 43,164 72,266 163,500 51,370 $ 330,300 $ 450,582 Accounts payable $ 113,317 Long-term notes payable 83,862 Common stock, $10 par value 162,500 Retained earnings 90,903 $ 66,958 89,340 162,500 69,635 Total liabilities and equity $ 450,582 $ 388,433 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 1 Year Ago $ 585,757 $ 300,453 116,945 $ 357,312 181,585 9,958 7,615 556,470 $ 29,287 $ 462,235 10,631 6,934 434,963 $ 27,272 $ 1.68 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 $ 1.80 $ 33.00 31.00 For both the current year and one year ago, compute the following ratios: 0.24 0.12 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. 3b. Assuming Simon's competitor has a price-earnings 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. Current Year: Return On Equity Numerator: Denominator: Return On Equity Preferred dividends Return on equity %