[The following information applies to the questions displayed below.] 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 $ 32,679 96,608 $ 37,817 $ 37,848 66,847 90,984 117,893 10,734 295,965 $ 553,879 106,212 163,500 149,009 Accounts payable $ 135,158 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 553,879 10,027 271,807 $ 477,482 $ 80,694 109,821 163,500 123,467 $ 477,482 For both the current year and one year ago, compute the following ratios: 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 Net income Earnings per share Current Year $720,043 $ 439,226 223,213 12,241 9,361 684,041 51,493 55,394 4,377 00:240,988 $ 390,100 $ 52,523 86,212 163,500 87,865 $ 390,100 1 Year Ago $ 369,333 143,756 13,069 8,523 $ 568,204 534,681 $ 33,523 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 $ 36,002 $ 2.22 $31.00 29.00 For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2. Dividend yield. 36. Price-earnings ratio on December 31. 0.32 0.16 $ 2.06 3b. Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth? Compute the return on equity for each year. Current Year: 1 Year Ago: Return On Equity Numerator: Net income Preferred dividends 1 Denominator: Average common stockholders' equity Return On Equity Return on equity 0 96 0 % Hegment Required 2 > Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Current Year: 1 Year Ago Numerator: Dividend Yield Denominator: = Dividend Yield Dividend yield 0% 0% Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Current Year: 1 Year Ago: Numerator: Price-Earnings Ratio Denominator: Price-Earnings Ratio Price-earnings ratio 0 0 Required 1 Required 2 Required 3A Required 3B Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth? Which company has higher market expectations for future growth