Exercise 13-11 Profitability analysis LO P3 Simon Company's year-end balance sheets follow. 2017 2016 2015 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 secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 31,189 $ 34,789 $ 36.500 89,809 64,400 56,400 9,82984,500 54,609 10,659 10,080 3,485 408,612 286,320 169,015 $550,000 $480,000 $ 320,000 $138,320 $ 82,742 $ 43,507 101,332 107,088 72,842 162,500 162,500 162,500 147,848 127,670 41,151 $550,000 $480,000 $ 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 anerating avnanses 2017 $ 715,000 $436,150 21550 2016 $ 571,200 $ 371,280 144 514 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 $ 715,000 $436,150 221,650 12,155 9,295 679, 250 $ 35,750 2016 $ 571,200 $ 371,280 144,514 13, 138 8,568 537,500 $ 33,700 $ 2.07 2.20 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 0.34 10.17 To help evaluate the company's profitability, compute the following ratios for 2017 and 2016 1Return on common stockholders equity 2. Price earnings ratio on December 31 13.Dividendide 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 return on common stockholders' equity for each year. Return On Common Stockholders' Equity Choose Denominator: Choose Numerator: 2017 2016 Required 2 > Prey 18 of 36 Score answer > to search Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the price-earnings ratio for each year. (Round your answers to 2 decimal places.) Price-Earnings Ratio 1 Choose Denominator: Choose Numerator: Price-Earnings Ratio Price-earnings ratio 2017 2016