[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 Accounts payable Current Year 1 Year Ago 2 Years Ago $ 36,476 $ 29,981 90,441 110,368 9,951 277,785 62,581 81,042 9,293 257,613 $ 447,005 $ 518,526 $ 125,240 Long-term notes payable Common stock, $10 par value $ 74,033 100,755 162,500 109,717 Total liabilities and equity $ 518,526 $ 447,005 Retained earnings 99,433 162,500 131,353 For both the current year and one year ago, compute the following ratios: $ 36,516 49,171 52,377 4,098 223,038 $ 365,200 $ 49,171 83,130 162,500 70,399 $ 365,200 Exercise 17-11 (Algo) Analyzing profitability LO P3 The company's Income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Sales Cost of goods sold Interest expense Other operating expenses Income tax expense Total costs and expenses Net income Earnings per share Current Year $ 674,084 $ 411,191 208,966 11,459 8,763 640,379 $ 33,705 $2.07 1 Year Ago $ 345,758 134,580 12,235 7,979 $ 531,936 500,552 $ 31,384 $ 1.93 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 $ 33.00 31.00 For both the current year and one year ago, compute the following ratios: 0.34 0.17 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 6, which company has higher market expectations for future growth? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 34 Required 3B Compute the return on equity for each year. Current Year: 1 Year Ago: Numerator: Return On Equity Denominator: = Return On Equity = Return on equity = % - Preferred dividends < Required 1 Required 2 > = %