(! Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash $ 35,692 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity 101,358 134,007 11,726 328,285 $ 611,068 Accounts payable $ 155,199 Long-term notes payable Common stock, $10 par value Total liabilities and equity Retained earnings 117,178 163,500 175,191 $ 41,721 73,750 96,480 11,062 303,770 $ 526,783 $ 86,356 122,372 163,500 154,555 $ 611,068 $ 526,783 For both the current year and one year ago, compute the following ratios: $ 42,616 55,696 61,126 4,829 261,933 $ 426,200 $ 54,571 97,016 162,500 112,113 $ 426,200 Exercise 13-11 (Algo) Analyzing profitability LO P3 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 Current Year 1 Year Ago $ 794,388 $ 626,872 $ 484,577 246,260 13,505 10,327 $ 407,467 158,599 14,418 9,403 754,669 $ 39,719 589,887 $ 36,985 $ 2.28 Earnings per share Additional information about the company follows. $ 2.44 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 $ 28.00 26.00 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 8, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below.