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 $ 36,102 $ 41,373 Accounts receivable, net 104,636 Merchandise inventory Prepaid expenses Plant assets, net 127,690 11,284 320,194 73,850 95,675 18,643 295,619 $ 517,160 $ 41,398 57,451 59,985 4,741 263,125 $ 426,700 Total assets Liabilities and Equity $ 599,906 Accounts payable $ 150,870 Long-term notes payable Common stock, $10 par value Retained earnings 110,527 163,500 175,009 154,504 Total liabilities and equity $ 599,906 $ 517,160 $ 84,778 115,378 162,500 $ 56,888 97,130 163,500 109,182 $ 426,700 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 Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year. $ 475,726 241,762 13,258 10,138 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 1 Year Ago $ 779,878 $ 615,420 $ 400,023 740,884 $ 38,994 $ 2.40 155,701 14,155 9,231 579,110 $ 36,310 $ 2.23 $ 33.00 31.00 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. 0.36 0.18 3b. Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth? 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 % % 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 7 = = 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