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. At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Current Year 1 Year Ago 2 Years Ago $ 28,257 81,898 $ 34,041 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 104,022 9,564 264,968 $ 488,709 $ 119,255 93,715 60,162 76,382 8,759 241,957 $ 421,301 $ 71,912 97,868 162,500 89,021 162,500 113,239 $ 488,709 $ 421,301 For both the current year and one year ago, compute the following ratios: $ 34,417 45,434 47,899 3,900 212,550 $ 344,200 $ 44,980 74,547 162,500 62,173 $ 344,200 ces 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 incode Earnings per share Current Year $ 387,546 196,950 10,800 8,259 Additional information about the company follows. $ 635,322 603,555 $ 31,767 $ 1.95 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 1 Year Ago: $ 325,876 126,841 11,531 7,520 $ 28.00 26.00 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. 0.38 0.19 $ 501,348 471,768 $ 29,580 $ 1.82 3b. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growt Compute the return on equity for each year. Return On Equity Current Year: 1 Year Ago: Numerator: Denominator: Return On Equity Return on equity Required 2 > 0 % 0 % Required 1 Required 2 Required 3A Required 3B Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Current Year: 1 Year Ago Numerator: Dividend Yield Denominator: < Required 1 Required 3A > Dividend Yield Dividend yield 0% 0% Required 1 Required 2 Required 3A Required 3B 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: < Required 2 Required 3B > Price-Earnings Ratio Price-earnings ratio 0 0