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 $ 35,761 102,598 130,314 11,865 331,697 $ 612,235 $ 41,379 71,674 96,665 10,862 307,209 $ 527,789 Accounts payable $ 150,922 Long-term notes payable Common stock, $10 par value Retained earnings 115,100 163,500 182,713 $ 91,872 123,819 163,500 148,598 Total liabilities and equity $ 612,235 $ 527,789 $ 42,689 56,918 60,006 4,648 266,939 $ 431,200 $ 57,488 95,295 163,500 114,917 $ 431,200 For both the current year and one year ago, compute the following ratios: $ 628,069 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 Current Year $ 795,906 $ 485,503 246,731 13,530 10,347 1 Year Ago $ 408,245 158,901 14,446 9,421 591,013 $ 37,056 $ 2.28 Total costs and expenses Net income Earnings per share 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 756,111 $ 39,795 $ 2.45 $ 31.00 29.00 0.30 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. 0.15 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below.