Stockholder Ratios Financial statements for Remington Inc. follow. Remington Inc. Consolidated Statements of Income (In thousands except per share amounts) 2019 2018 2017 Net sales $7,245,088 $6,944,296 $6,149,218 (5,286,253) (4,953,556) (4,355,675) $1,958,835 $1,990,740 $1,793,543 Cost of goods sold Gross margin General and administrative expenses Special and nonrecurring items (1,259,896) (1,202,042) (1,080,843) 2,617 Operating income $701,556 $788,698 $712,700 (63,685) (62,398) (63,927) 7,308 10,080 11,529 Interest expense Other income Gain on sale of investments Income before income taxes 9,117 $645,179 $745,497 $660,302 Provision for income taxes 254,000 290,000 257,000 Net income $391,179 $455,497 $403,302 Net income per share $1.08 $1.25 $1.11 Remington Inc. Consolidated Balance Sheets (In thousands) Dec. 31, 2019 ASSETS Dec. 31, 2018 $320,558 $41,235 Current assets: Cash and equivalents Accounts receivable Inventories 1,056,911 837,377 733,700 803,707 Other 109,456 101,811 Total current assets $2,220,625 $1,784,130 Property and equipment, net 1,666,588 1,813,948 Other assets 247,892 248,372 Total assets $4,135,105 $3,846,450 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $250,363 $309,092 Accrued expenses 347,892 274,220 15,700 Other current liabilities Income taxes 93,489 137,466 Total current liabilities $707,444 $720,778 Long-term debt $650,000 $541,639 Deferred income taxes 275,101 274,844 Other long-term liabilities 61,267 41,572 Total liabilities $1,693,812 $1,578,833 Stockholders' equity: Preferred stock $100,000 $100,000 Common stock 89,727 89,727 Additional paid-in-capital--common stock 128,906 127,776 Retained earnings 2,397,112 2,136,794 $2,715,745 $2,454,297 (186,680) Less: Treasury stock, at cost (274,452) Total stockholders' equity $2,441,293 $2,267,617 Total liabilities and stockholders' equity $4,135,105 $3,846,450 Use the information provided above and below to respond to the following requirements. Year ended December 31, Item 2019 2018 359,392 364,398 $24,000 $24,000 Average number of common shares outstanding (thousands) Preferred dividends (thousands) Dividends per common share Common Dividends (thousands) Common stock repurchases $0.36 $1.54 130,861.00 561,172.30 0 0 Market price per share: High $83.25 $79.10 Low 63.25 59.00 Close 78.42 66.36 At January 1, 2018, total stockholders' equity was $2,083,122 and there was no preferred stock. Required: 1. Compute the earnings per share, return on common equity, dividend yield ratio, and dividend payout ratio (in percentage terms, rounded to two decimal places except for EPS, which should be rounded to nearest cent) for 2018 and 2019. 2019 2018 Earnings per share 1.02 1.18 Return on common equity 15.75 X % 20.30 X % Dividend yield ratio 0.46 % 2.32 % Dividend payout ratio 36.70 X % 130.05 X % 2. Conceptual Connection: Indicate whether there were significant changes in these ratios between the years ended December 31, 2019, and December 31, 2018. Decreased Determine whether the stockholder ratios suggest that Remington was a better investment at December 31, 2019, or December 31, 2018. December 31, 2018