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omework (EOC) Managerial Accounting Saved 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 $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 $ 35,625 $ 37,800 62,500 82,500 9,375 255,000 $ 445,000 Accounts payable $ 129,900 Long-term notes payable 98,500 $ 75,250 101,500 Common stock, $10 par value 163,500 163,500 Retained earnings 131,100 104,750 Total liabilities and equity $ 523,000 $ 445,000 50,200 54,000 5,000 230,500 $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 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 $ 411,225 209,550 12,100 9,525 Additional information about the company follows. $ 673,500 642,400 $ 31,100 $ 1.90 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 $ 345,500 134,980 13,300 8,845 $ 30.00 28.00 0.29 0.24 For both the current year and one year ago, compute the following ratios: $532,000 502,625 $ 29,375 $ 1.80 < Prev 10 of 14 Next > MacBook Pro Required information 1. Return on equity. Tuning r 2. Dividend yield. 3a. Price-earnings ratio on December 31. 3b. Assuming Simon's competitor has a price-earnings ratio of 10, which company has higher market expectations F 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: Return On Equity Net income Average total equity Return on equity Current Year $ 31,100 $ 0 = 0 % 1 Year Ago $ 29,375 / $ 0 0% < Prev 10 of 14 Next > MacBook Pro

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