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 Current Year 1 Year Ago 2 Years Ago: $ 35,398 104,645 126,411 $ 41,376 72,409 97,597 11,513 321,991 $ 599,958 11,079 294,744 $ 517,205 $ 84,785 116,578 162,500 153,342 Accounts payable Long-term notes payable $ 146,402 115,048 Common stock, $10 par value Retained earnings 163,500 175,008 Total liabilities and equity $ 599,958 $ 517,205 For both the current year and one year ago, compute the following ratios: $ 43,976 58,054 62,452 4,789 270,529 $ 439,800 $ 56,312 98,168 163,500 121,820 $ 439,800 Required information 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 $ 475,766 241,783 13,259 10,139 1 Year Ago $ 615,474 $ 779,945 $ 400,058 740,947 $ 38,998 $2.40 155,715 14,156 9,232 579,161 $ 36,313 $2.23 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 0.34 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 7, which company has higher market expectations for future growth? Required information 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. Current Year: 1 Year Ago: Return On Equity Numerator: Denominator: = Return On Equit Preferred dividends = Return on equity 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. Note: Round your answers to 2 decimal places. Dividend Yield Numerator: / Denominator: = Dividend Yield = Dividend yield Current Year: 1 Year Ago = % % < Required 1 Required 3A > of 6 ok ences Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the price-earnings ratio for each year. Note: Round your answers to 2 decimal places. Current Year: 1 Year Ago: Numerator: Price-Earnings Ratio Denominator: =Price-Earnings Ratio Price-earnings ratio < Required 2 Required 3B >