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. Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 39,253 Current Year 1 Year Ago 2 Years Ago $ 33,550 97,238 121,060 10,275 $ 38,064 67,957 90,689 9,8911 273,999 295,373 $ 557,496 $136,040 106,905 $ 480,600 $ 79,597 113,854 163,500 163,500 151,051 123,649 $ 557,496 $ 480,600 For both the current year and one year ago, compute the following ratios: Exercise 17-11 (Algo) Analyzing profitability LO P3 The company's income statements for the Current Year and 1 Year Ago, follow. 51,809 55,734 4,494 249,210 $ 400,500 $ 52,337 91,166 162,500 94,497 $ 400,500 Exercise 17-11 (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 $ 724,745 $ 442,094 224,671 12,321 9,422 688,508 $ 36,237 $2.23 1 Year Ago $ 571,914 $ 371,744 144,694 13,154 8,579 538,171 $ 33,743 $ 2.08 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 $ 30.00 28.00 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. 0.24 0.12 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth