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Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 32,605 $ 39,278 $ 40,506

Simon Company's year-end balance sheets follow.

At December 31 Current Year 1 Year Ago 2 Years Ago
Assets
Cash $ 32,605 $ 39,278 $ 40,506
Accounts receivable, net 99,320 67,376 53,473
Merchandise inventory 117,601 89,033 58,099
Prepaid expenses 11,036 9,902 4,412
Plant assets, net 303,337 280,531 248,610
Total assets $ 563,899 $ 486,120 $ 405,100
Liabilities and Equity
Accounts payable $ 139,007 $ 82,976 $ 54,543
Long-term notes payable 102,833 112,926 89,527
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 159,559 127,718 98,530
Total liabilities and equity $ 563,899 $ 486,120 $ 405,100

For both the current year and one year ago, compute the following ratios:

Exercise 13-11 (Algo) Analyzing profitability LO P3

The companys income statements for the Current Year and 1 Year Ago, follow.

For Year Ended December 31 Current Year 1 Year Ago
Sales $ 733,069 $ 578,483
Cost of goods sold $ 447,172 $ 376,014
Other operating expenses 227,251 146,356
Interest expense 12,462 13,305
Income tax expense 9,530 8,677
Total costs and expenses 696,415 544,352
Net income $ 36,654 $ 34,131
Earnings per share $ 2.26 $ 2.10

Additional information about the company follows.

Common stock market price, December 31, Current Year $ 28.00
Common stock market price, December 31, 1 Year Ago 26.00
Annual cash dividends per share in Current Year 0.32
Annual cash dividends per share 1 Year Ago 0.16

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 7, which company has higher market expectations for future growth?image text in transcribed

For both the current year and one year ago, compute the following ratios: Exercise 13-11 (Algo) Analyzing profitability LO P3 The company's income statements for the Current Year and 1 Year Ago, follow. Additional information about the company follows. 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 7, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Compute the return on equity for each year

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