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 $ 30,567 89,506 $ 36,098 64,461 84,329 112,537 9,945 291,554 $ 534,109 $136,983 101,417 9,669 265,882 $ 460,439 $ 79,370 106,960 163,500 110,609 163,500 132,209 $ 534,109 $ 460,439 For both the current year and one year ago, compute the following ratios: The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales i Cost of goods soldi Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 694,342 $ 423,549 215,246 11,804 9,026 659,625 $ 34,717 $2.14 $ 37,234 49,645 53,406 4,304 235,311 $ 379,900 $ 50,648 83,958 163,500 81,794 $ 379,900 1 Year Ago $ 356,149 138,624 12,602 8,219 $ 547,922 515,594 $ 32,328 $ 1.99 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 $ 29.00 27.00 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. 0.12 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. Current Year: 1 Year Ago: Numerator: Preferred dividends Return On Equity Denominator: = = Return On Equity Return on equity % % Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago i Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year Ago. $ 29.00 27.00 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 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. Note: Round your answers to 2 decimal places. Dividend Yield Numerator: Denominator: Dividend Yield = Dividend yield % Current Year: 1 Year Ago 1 % 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 $ 29.00 27.00 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 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. Note: Round your answers to 2 decimal places. Current Year: 1 Year Ago: Price-Earnings Ratio Denominator: Price-Earnings Ratio = Price-earnings ratio 1 = Numerator: 1 1 < Required 2 Required 3B > =