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 Current Year 1 Year Ago 2 Years Ago $ 35,787 99,653 124,017 11,638 323,567 $ 41,421 71,052 93,890 10,442 295,835 $ 512,640 $ 41,870 57,518 59,449 4,699 263,664 $ 427,200 $ 55,826 $ 594,662 $ 152,513 115,150 162,500 164,499 $ 86,636 120,265 163,500 142,239 92,523 162,500 116,351 $ 594,662 $ 512,640 $ 427,200 Common stock, $10 par value Retained earnings Total liabilities and equity For both the current year and one year ago, compute the following ratios: $ 610,042 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 $ 773,061 $ 471,567 239,649 13,142 10,050 1 Year Ago Earnings per share Additional information about the company follows. 734,408 $ 38,653 $ 2.38 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 $ 396,527 154,341 14,031 9,151 $ 31.00 29.00 0.36 0.18 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. 574,050 $ 35,992 $ 2.21 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. Return On Equity Current Year: 1 Year Ago: Numerator: Denominator: = = Return On Equity Return on equity % %