Question
Simon Companys year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,300 $ 34,200 $ 37,000
Simon Companys year-end balance sheets follow.
At December 31 | Current Yr | 1 Yr Ago | 2 Yrs Ago | ||||||
Assets | |||||||||
Cash | $ | 31,300 | $ | 34,200 | $ | 37,000 | |||
Accounts receivable, net | 89,000 | 62,400 | 56,100 | ||||||
Merchandise inventory | 94,682 | 82,500 | 56,000 | ||||||
Prepaid expenses | 10,650 | 10,084 | 3,376 | ||||||
Plant assets, net | 329,368 | 300,816 | 157,524 | ||||||
Total assets | $ | 555,000 | $ | 490,000 | $ | 310,000 | |||
Liabilities and Equity | |||||||||
Accounts payable | $ | 136,813 | $ | 81,154 | $ | 41,738 | |||
Long-term notes payable secured by mortgages on plant assets | 101,210 | 112,700 | 70,565 | ||||||
Common stock, $10 par value | 162,500 | 162,500 | 162,500 | ||||||
Retained earnings | 154,477 | 133,646 | 35,197 | ||||||
Total liabilities and equity | $ | 555,000 | $ | 490,000 | $ | 310,000 | |||
The companys income statements for the Current Year and 1 Year Ago, follow.
For Year Ended December 31 | Current Yr | 1 Yr Ago | ||||||||||
Sales | $ | 721,500 | $ | 583,100 | ||||||||
Cost of goods sold | $ | 440,115 | $ | 379,015 | ||||||||
Other operating expenses | 223,665 | 147,524 | ||||||||||
Interest expense | 12,266 | 13,411 | ||||||||||
Income tax expense | 9,380 | 8,747 | ||||||||||
Total costs and expenses | 685,426 | 548,697 | ||||||||||
Net income | $ | 36,074 | $ | 34,403 | ||||||||
Earnings per share | $ | 2.22 | $ | 2.12 | ||||||||
Additional information about the company follows.
Common stock market price, December 31, Current Year | $ | 30.00 |
Common stock market price, December 31, 1 Year Ago | 28.00 | |
Annual cash dividends per share in Current Year | 0.34 | |
Annual cash dividends per share 1 Year Ago | 0.17 | |
For both the Current Year and 1 Year Ago, compute the following ratios: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31.
Compute the return on common stockholders' equity for each year.
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Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.)
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PLEASE ASSIST, THIS IS MY SECOND TIME ASKING FOR HELP WITH THIS PROBLEM.
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