Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net Merchandise inventory...
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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 $ 25,067 74,832 $ 29,301 52,303 $ 29,319 38,694 88,606 8,234 228,130 68,437 7,461 208,764 $ 366,266 $ 62,518 85,926 162,500 55,322 43,342 3,224 187,621 $ 302,200 $ 40,289 66,786 162,500 32,625 $ 302,200 $ 424,869 $ 107,908 Long-term notes payable Common stock, $10 par value Retained earnings 80,674 163,500 72,787 Total liabilities and equity $ 424,869 $ 366,266 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 Current Year $ 336,921 171,222 $ 552,330 9,390 7,180 $ 27,617 524,713 1 Year Ago $ 435,857 $ 283,307 110,272 10,025 6,538 410,142 $ 25,715 $ 1.58 Earnings per share Additional information about the company follows. $ 1.70 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 $ 32.00 30.00 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 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 3A Required 3B Compute the return on equity for each year. Current Year: 1 Year Ago: Return On Equity Numerator: Denominator: Preferred dividends 1 < Required 1 Required 2 > Return On Equity Return on equity = % % 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 $ 25,067 74,832 $ 29,301 52,303 $ 29,319 38,694 88,606 8,234 228,130 68,437 7,461 208,764 $ 366,266 $ 62,518 85,926 162,500 55,322 43,342 3,224 187,621 $ 302,200 $ 40,289 66,786 162,500 32,625 $ 302,200 $ 424,869 $ 107,908 Long-term notes payable Common stock, $10 par value Retained earnings 80,674 163,500 72,787 Total liabilities and equity $ 424,869 $ 366,266 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 Current Year $ 336,921 171,222 $ 552,330 9,390 7,180 $ 27,617 524,713 1 Year Ago $ 435,857 $ 283,307 110,272 10,025 6,538 410,142 $ 25,715 $ 1.58 Earnings per share Additional information about the company follows. $ 1.70 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 $ 32.00 30.00 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 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 3A Required 3B Compute the return on equity for each year. Current Year: 1 Year Ago: Return On Equity Numerator: Denominator: Preferred dividends 1 < Required 1 Required 2 > Return On Equity Return on equity = % %
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