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. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net 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 $ 28,851 81,945 107,236 9,198 261,763 $ 488,993 $ 33,724 57,246 76,426 8,852 245,298 $ 421,546 $ 33,755 45,915 48,905 3,864 211,961 $ 344,400 $ 125,412 92,850 163,500 107,231 $ 488,993 $ 71,954 99,864 162,500 87, 228 $ 421,546 $ 44,552 73,829 162,500 63,519 $ 344,400 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 $ 635,691 $ 387,772 197,064 10,807 8,264 603,907 $ 31,784 1 Year Ago $ 501, 640 $ 326,066 126,915 11,538 7,525 472,044 $ 29,596 $ 1.82 $ 1.96 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 $ 33.00 31.00 0.36 0.18 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 8, 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: 1 Denominator: Return On Equity Net income Average total equity II Return on equity 21.8 Current Year: $ S 145,867 X % 31,784 29,596 1 1 1 Year Ago: $ Il 0 %