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 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 32, 177 $ 37, 243 $ 36, 897 Accounts receivable, net 89, 600 62,593 51, 204 Merchandise inventory 118, 403 83, 566 54,543 Prepaid expenses 10, 057 9, 873 4, 100 Plant assets, net 284, 435 267, 649 233, 556 Total assets $ 534, 672 $ 460,924 $ 380, 300 Liabilities and Equity Accounts payable $ 133, 133 $ 77, 117 $ 49, 196 Long-term notes payable 98, 508 103, 892 84, 046 Common stock, $10 par value 163,500 163,500 162,500 Retained earnings 139,531 116 , 415 84, 558 Total liabilities and equity $ 534, 672 $ 460,924 $ 380, 300 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 Current Year 1 Year Ago Sales $ 695,0?4 $ 543,500 Coat of goods sold $ 423,995 $ 356,525 Other operating expenses 215,473 133,7?1 Interest expense 11,316 12,616 Income tax expense 9,035 3,223 Total costs and expenses 660,320 516,140 Net income $ 34,754 3 32,360 Earnings per share 3 2-14 $ 1.99 Additional information about the company follows. Common stock market price, December 31, Current Year 3 33.00 Common stock market price, December 31, 1 Year Ago 31.00 Annual cash dividends per share in Current Year 0.24 Annual cash dividends per share 1 Year Ago 0.12 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 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 return on equity for each year. Return On Equity Numerator: Denominator: S Return On Equity Preferred dividends Return on equity Current Year: % 1 Year Ago: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.) Dividend Yield Numerator: 1 Denominator: = Dividend Yield Dividend yield Current Year: % 1 Year Ago %