Chapter 130 Exercise 13-11 Profitability analysis LO P3 Simon Company's year-end balance sheets follow. At December 31 2015 2014 2013 Assets Cash $ 31,500 $ 34,700 $ 37,900 Accounts receivable, net 88,600 63,100 56,000 Merchandise inventory 44.236 84.600 54.700 Prepaid expenses 10,470 9 ,771 3,485 Plant assets, net 360,194 277,829 167,915 Total assets $535,000 $470.000 $320,000 $ 134,547 $ 79,430 $ 41,395 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings 100,580 108,100 69,306 162,500 162,500 162,500 137,373 119,970 46,799 $535,000 $470,000 $320,000 Total liabilities and equity The company's income statements for the years ended December 31, 2015 and 2014, follow. MacBook Air The company's income statements for the years ended December 31, 2015 and 2014, follow For Year Ended December 31 2015 2014 $695,500 $559,300 Sales Cost of goods sold Other operating expenses Interest expense Income taxes $424,255 215,605 $363,545 141,503 12,864 8,390 11,824 9,042 Total costs and expenses 660,726 526,302 Net income $ 34,774 $ 32,998 Earnings per share $ 2.14 $ 2.03 Additional information about the company follows. Common stock market price, December 31, $34.00 MacBook Air Help Save & Exit Submit Additional information about the company follows. Common stock market price, December 31, $34.00 2015 Common stock market price, December 31, 3200 2014 Annual cash dividends per share in 2015 0.32 Annual cash dividends per share in 2014 0.16 To help evaluate the company's profitability, compute the following ratios for 2015 and 2014: (1) Return on common stockholders' equity. Return On Common Stockholders' Equity Choose Denominator: Choose Numerator: - Return On Common Stockholders' Equity Return on common stockholders' equity 2015 2014 Saved (2)Price-earnings ratio on December 31. (Round your answers to 2 decimal places.) Price-Earnings Ratio Choose Denominator Choose Numerator: Price-Earnings Ratio Price-earnings ratio 2015 2014 (3) Dividend yield. (Round your answers to 2 decimal places.) Dints (3)Dividend yield. (Round your answers to 2 decimal places.) eBook Print Dividend Yield Choose Denominator Choose Numerator: = References Dividend Yield Dividend yield 2015 2014