Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable,...
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Current Yr 1 Yr Ago 2 Yrs 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 $ 31,100 $ 34,900 $ 36,700 89,600 62,000 54,300 30, 858 82,700 55,700 11, 130 9,193 3,703 417, 312 236, 207 179, 597 $ 580,000 $425,000 $330,000 $ 148,753 $ 71,107 $ 43,560 106,859 95,795 73, 659 162,500 162,500 162,500 161,888 95,598 50, 281 $ 580,000 $425,000 $330,000 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 Yr $754,000 $459, 940 233, 740 12,818 9, 802 716,300 $ 37,700 $ 2.32 1 Yr Ago $505, 750 $328,738 127,955 11,632 7,586 475, 911 $ 29,839 1.84 Additional information about the company follows. $29.00 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 27.00 0.34 0.17 For both the current year and one year ago, compute the following ratios: 1. Return on common stockholders' equity, 2. Dividend yield 3. Price-earnings ratio on December 31. 3a. Assuming Simon's competitor has a price-earnings ratio of 7, which company has higher market expectations for future growth
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