Exercise 13-11 Profitability analysis LO P3 2016 Simon Company's year-end balance sheets follow At December 31 2017 2015 Assets Cash $ 31,800 $ 34,400 $ 36,500 Accounts receivable, net 89,500 64,800 52,380 Merchandise inventory 16,570 83,700 58,200 Prepaid expenses 10,893 9,639 3,520 Plant assets, net 436, 237 257,461 169,480 Total assets $585,000 $450,000 $320,000 Liabilities and Equity Accounts payable $144,288 $ 77,571 $ 42,248 Long-term notes payable secured by mortgages on plant assets 109,980 105,570 69,306 Common stock, sie par value 162,500 162,500 162,500 Retained earnings 168 312 104 359 45 954 Total liabilities and equity $585,000 $450,000 $320,000 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share 2017 $760,500 $463,905 235, 755 12,929 9,887 722,476 $ 38,024 $ 2.34 2016 $535,500 $348,075 135,482 12,317 8,033 503,907 $ 31,593 1.94 Additional information about the company follows. Common stock market price, December 31, 2017 Common stock market price, December 31, 2016 Annual cash dividends per share in 2017 Annual cash dividends per share in 2016 $32.00 30.00 8.30 0.15 To help evaluate the company's profitability, compute the following ratios for 2017 and 2016: 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 3. Dividend yield Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 MACBOOK 1. Return on common stockholders' equity. 2. Price-earnings ratio on December 31. 3. Dividend yield. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the price-earnings ratio for each yea (Round your answers to 2 decimal places.) Choose Numerator: Price-Earnings Ratio 1 Choose Denominator: 1 1 1 - Price-Earnings Ratio Price-earnings ratio 2017 2016