Exercise 13-11 Profitability analysis LO P3 Simon Company's year-end balance sheets follow. 2016 At December 31 2017 2015 Assets Cash 31,400 $ 34,900 37,700 62,700 83,100 10,181 289,119 $545,000 $480,000 $370,000 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 88,200 78,078 10,459 336,863 55,900 59,500 3,989 212,911 Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets $138,419 $ 79,498 $ 48,352 99,386 112,608 81,770 Common stock, $10 par 162,500 162,500 162,500 value 144,695 125,394 Retained earnings 77,378 Total liabilities and $545,000 $480,000 $370,000 equity The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended 2017 2016 December 31 Sales $708,500 $571,200 of goods Cost $432,185 $371,280 Other operating 219,635 144,514 epeast 12,045 13,138 expense Income taxes 9,211 8,568 Total costs and 673,076 537,500 expenses $ 33,700 Net income $35,424 Earnings per S 2.18 S 2.07 share Additional information about the company follows. Common stock market price, December 31.00 31, 2017 Common stock market price, December 31, 2016 Annual cash dividends per share in 29.00 0.38 2017 Annual cash dividends per share in 0.19 2016 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. Compretu tis question by enterngyour answers mne taps Deuow. Required Required Required 1 2 3 Compute the return on common stockholders' equity for each year. Return On Common Stockholders' Equity Return On Common Choose Denominator: Choose Numerator: Stockholders' Equity Return on common stockholders' equity - 2017 2016 Required 1 Required 2 > |" || w Required Required Required 1 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio Price-Earnings Ratio Choose Denominator: Choose Numerator: Price-earnings ratio / 2017 2016 / KRequired 1 Required 3 Required Required Required 2 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Dividend Yield Dividend Yield Choose Denominator: Choose Numerator: Dividend - yield 2017 2016 KRequired 2 Required 3 >