This is all one question, please help!
! Required information Use the following information for the Exercises below. (Algo) (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years 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 Common stock, $10 par value Retained earnings Total liabilities and equity $ 33,175 93,322 119,706 10,474 294,581 $ 551, 258 $ 37,257 65,200 90,554 9,980 272,231 $ 475, 222 $ 40, 406 54,408 56,235 4,578 248, 473 $ 404,100 $ 141,381 101,564 162,500 145,813 $ 551,258 $ 82,722 111,487 163,500 117,513 $ 475,222 $ 52,274 90,199 162,500 99,127 $ 404,100 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. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Current Year $ 716,635 $ 437,147 222,157 12,183 9,316 680,803 $ 35,832 $ 2.21 1 Year Ago $ 565,514 $ 367,584 143,075 13,007 8,483 532,149 $ 33,365 Earnings per share $ 2.05 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 $ 29.00 27.00 0.36 0.18 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. Required 1 Required 2 Required 3A Required 3B Compute the return on equity for each year. Return On Equity Numerator: Denominator: II Return On Equity 1 = = Return on equity Current Year: 1 II = % 1 Year Ago: / = % Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Numerator: 1 Denominator: Il Dividend Yield = Dividend yield Current Year: / = % 1 Year Ago = % Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Numerator: 1 Denominator: = Il Price-Earnings Ratio Price-earnings ratio / II = Current Year: / = 1 Year Ago: / = Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth? Which company has higher market expectations for future growth
