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 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Current Year 1 Year Ago 2 Years Ago $ 33,190 94,308 $ 38,035 65,896 $ 38,439 52,821 Long-term notes payable Common stock, $10 par value: Retained earnings Total liabilities and equity 118,575 10,688 294,749 $ 551,510 $ 134,579 104,721 163,500 148,710 85,318 10,084 276,107 $ 475,440 $ 81,153 108,258 163,500 122,529 $ 551,510 $ 475,440 For both the current year and one year ago, compute the following ratios: 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 Interest expense Other operating expenses Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 716,963 $437,347 222,259 12,189 9,321 681,115 $ 35,848 $2.21 56,823 4,402 243,715 $ 396,200 $ 52,298 85,809 163,500 94,593 $ 396,200 1 Year Ago $ 367,753 143,141 13,013 8,487 $ 565,774 532,394 $ 33,380 $2.05 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 $32.00 30.00 0.34 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. 0.17 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.