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 Current Year 1 Year Ago 2 Years Ago $ 38,929 66,103 $ 40,146 $ 32,315 93,658 117,758 10,513 304,644 87,350 10,421 278,997 $ 481,800 $ 558,888 $ 141,946 Long-term notes payable Common stock, $10 par value Retained earnings 102,970 162,500 151,472 $ 80,610 108,598 163,500 129,092 Total liabilities and equity $ 558,888 $ 481,800 For both the current year and one year ago, compute the following ratios: 53,528 58,153 4,328 245,345 $ 401,500 $ 54,058 86,070 162,500 98,872 $ 401,500 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 $ 726,554 $ 443,198 225,232 12,351 9,445 690,226 $ 36,328 $ 2.24 1 Year Ago $ 573,342 $ 372,672 145,056 13,187 8,600 539,515 $ 33,827 $ 2.08 Earnings per share Additional information about the company follows. 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 30.00 0.30 0.15 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 3B Compute the return on equity for each year. Return On Equity Numerator: Denominator: = Return On Equity Net income Preferred dividends 1 Current Year: Average common stockholders' equity $ = Return on equity 2 = || % 1 Year Ago: 2 = % Required 1 Required 2 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 3B S Compute the dividend yield for each year. Note: Round your answers to 2 decimal places. Dividend Yield Numerator: Denominator: = Dividend Yield = Dividend yield Current Year: II = 0% 1 Year Ago = II 0% Required 1 Required 3A > 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 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 I I = 0 II 0 < Required 2 Required 3B > 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 3B 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? < Required 3A Required 3B >