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. $ 41,398 At December 31 Assets Current Year 1 Year Ago 2 Years Ago Cash Accounts receivable, net $ 36,102 104,636 $ 41,373 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 127,690 11,284 320,194 $ 599,906 $ 150,870 110,527 163,500 175,009 73,850 95,675 10,643 295,619 $ 517,160 $ 84,778 115,378 162,500 154,504 $ 599,906 $ 517,160 For both the current year and one year ago, compute the following ratios: 57,451 59,985 4,741 263,125 $ 426,700 $ 56,888 97,130 163,500 109,182 $ 426,700 $ 615,420 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 $ 475,726 241,762 13,258 $ 779,878 10,138 740,884 $ 38,994 1 Year Ago $ 400,023 155,701 14,155 9,231 579,110 $ 36,310 $ 2.23 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 $2.40 $ 33.00 31.00 8.36 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. 8.18 3b. Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth? Required 1 Required 2 Required 3A Required 3B Compute the return on equity for each year. Current Year: 1 Year Ago: Return On Equity Denominator: Numerator: Preferred dividends 1 1 1 Return On Equity = Return on equity = % = 96 Compute the dividend yield for each year. Note: Round your answers to 2 decimal places. Current Year: 1 Year Ago Numerator: Dividend Yield Denominator: = Dividend Yield = Dividend yield = 96 = 96 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 Numerator: V 1 = = Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth? Which company has higher market expectations for future growth