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 Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Current Year 1 Year Ago 2 Years Ago $ 26,489 76,773 $ 30,660 94,635 8,363 233,904 $ 440,164 $ 109,601 84,406 53,655 70,901 7,809 216,427 $ 379,452 $ 62,845 86,401 162,500 67,706 162,500 83,657 $ 440,164 $ 379,452 For both the current year and one year ago, compute the following ratios: $ 29,785 40,929 43,158 3,377 189,751 $ 307,000 $ 40,524 67,847 163,500 35,129 $ 307,000 1 Year Ago $ 451,548 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 Income tax expense Interest expense Current Year $ 572,213 $ 349,050 177,386 9,728 7,439 543,603 $ 28,610 $ 293,506 114,242 10,386 6,773 424,907 $ 26,641 $ 1.64 Total costs and expenses Net income 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 $ 1.76 $ 32.00 30.00 For both the current year and one year ago, compute the following ratios: 0.24 0.12 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 3B Compute the return on equity for each year. Current Year: 1 Year Ago: Numerator: Preferred dividends Required 1 Required 2 Required 3A Required 3B Compute the dividend yield for each year. Note: Round your answers to 2 decimal places. Current Year: 1 Year Ago Return On Equity Denominator: = Return On Equity = Return on equity = % Dividend Yield Denominator: = = Dividend Yield Dividend yield % Numerator: I / Required 1 Required 2 Required 3A Required 3B Compute the price-earnings ratio for each year. Note: Round your answers to 2 decimal places. Current Year: 1 Year Ago: Numerator: Price-Earnings Ratio Denominator: = Price-Earnings Ratio = Price-earnings ratio = = Required 1 Required 2 Required 3A Required 3B 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? %