Simon Company's year-end balance sheets follow Current Yr 1 Yr Ago 2 Yrs Ago 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,500 $ 35,000 $ 37,900 89,800 64,800 53,498 73,548 84,189 56,789 11,155 3,555 363,997 251,755 168,445 $570,000 $445,800 $ 320,000 9,345 $141,930 $ 74,453 $ 42,662 109,303 102,350 72,134 162,500 162,500 162,500 156,267 105, 697 42,704 $570,000 $445,000 $ 320,000 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 Current Ye $741,000 $452,010 229,710 12,597 9,633 703,950 37 ASA 1 Yr Ago $ 529,550 $344,208 133,976 12,180 7,943 498,387 21 742 Check The company's income statements for the Current Year and 1 Year Ago follow. For Year Ended December 31 Current Yr 1 YA Sales 5741,000 $529,550 Cost of goods sold $452,010 Other operating expenses 54,200 229,710 133,976 Interest expense 12,597 12.10 Income tax expense 9.633 22943 Total costs and expenses 703,950 498,307 Net Income $ 37,050 $ 31,243 Earnings per share $ 2.25 $ 1.92 Additional information about the company follows Connon stock market price, December 31, Current Year Common stock market price, December 31, 1 Year Ao Annual cash dividends per share in Current Year Annual cash dividends per share 1 Year $32.00 10.00 0.30 0.15 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 20. Assuming Simon's competitor has a price earnings ratio of which company has higher market expectations for future growth? 3. Dividend yield Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholders Equity Choose Numerator Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders' equity Net income Preferred dividends 1 Average common stockholders' equity Current Year: 1 Year Ago: $ $ 37,050 31,243 0] / ol 04 Requitu Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Compute the price earnings ratio for each year. (Round your answers to 2 decimal places.) Choose Numerator Price Earnings Ratio Choose Denominator Price Earnings Ratio Price-earnings ratio Current Year: 1 Year Ago: 1 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2a Required 3 Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Which company has the market expectations for future growth? Required 1 Required 2 Required 2a Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Choose Numerator Choose Denominator Current Year: Dividend Yield Dividend yield 0 % 0 % 1 Year Ago
