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 $ 24,735 72,428 93,852 $ 30,136 Long-term notes payable. Common stock, $10 par value Retained earnings Total liabilities and equity 8,048 233,137 $ 432,200 $ 109,770 82,879 $ 30,105 50,597 66,861 8,059 216,964 $372,586 $ 62,337 84,838 163,500 61,911 163,500 76,051 $432,200 $ 372,586 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 Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 561,860 $ 342,735 174,177 9,552 7,304 533,768 $ 28,092 $ 1.73 38,975 43,225 3,281 188,783 $ 304,400 $ 39,377 67,945 162,500 34,578 $ 304,400 1 Year Ago $ 288,195 112,174 10,198 6,651 $ 443,377 417,218 $ 26,159 $ 1.61 Additional information about the company follows. Common stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ago $31.00 29.00 Required information The company's income statements for the Current Year and 1 Year Ago, follow. 6 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Current Year $ 561,860 $ 342,735 174,177 Net income Earnings per share 9,552 7,304 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 533,768 $ 28,092 $ 1.73 1 Year Ago $ 288,195 112,174 10,1981 6,651 $ 443,377 417,218 $ 26,159 $ 1.61 $ 31.00 29.00 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 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 38 Compute the return on equity for each year. Return On Equity Current Year: 1 Year Ago: Numerator: Denominator: Return On Equity Return on equity 0% 0% Pesubed 3 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 $ 342,735 174,177 9,552 7,384 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 $ 561,860 533,768 $ 28,092 $ 1.73 1 Year Ago $ 288,195 112,174 10,198 6,651 $31.00 29.00 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. 8.36 0.18 $ 443,377 417,218 $ 26,159 $ 1.61 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 dividend yield for each year. (Round your answers to 2 decimal places.) Current Year: 1 Year Ago Numerator: Dividend Yield Denominator: Dividend Yield Dividend yield 0% 0% Required information 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 1 Year Ago Current Year $ 561,860 $ 342,735 174,177 9,552 7,304 $ 288,195 112,174 10,198 6,651 533,768 $ 28,092 $ 443,377 417,218 $ 26,159 $ 1.61 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 $ 1.73 $31.00 29.00 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 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 38 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Current Year: 1 Year Ago: Numerator: Price-Earnings Ratio Denominator: Price-Earnings Ratio. Price-earnings ratio 0 0