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 Current Year 1 Year Ago 2 Years Ago $ 29,081 51,910 $ 31,536 $ 24,382 72,828 91,568 8,172 224,730 $ 421,680 $ 106,048 80,861 162,500 72,271 67,923 7,405 207,198 $ 363,517 $ 60,206 81,937 163,500 57,874 $ 421,680 $ 363,517 For both the current year and one year ago, compute the following ratios: 39,987 44,790 3,435 192,552 $ 312,300 $ 40,399 70,399 163,500 38,002 $ 312,300 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 $ 548,184 $ 334,392 169,937 9,319 7,126 1 Year Ago $ 432,585 520,774 $ 27,410 $ 1.69 $ 281,180 109,444 9,949 6,489 407,062 $ 25,523 $ 1.57 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 $ 32.00 30.00 0.26 0.13 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? 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: 1 Denominator: Preferred dividends I 1 Required 1 Required 2 Required 3A Required 3B Compute the dividend yield for each year. Note: Round your answers to 2 decimal places. Current Year: 1 Year Ago Numerator: Dividend Yield 1 Denominator: = Dividend Yie / = Dividend yie I 1 = = 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: Price-Earnings Ratio Numerator: 1 Denominator: = Price-Earnings Ra 1 = Price-earnings rati = / / = Image ired 1 Required 2 Required 3A Required 3B Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectatio growth? Which company has higher market expectations for future growth?