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 $ 31,900 $ 35,625 $ 37.989 89,500 62.500 50.299 112,500 82,50 54.888 19.788 9.375 5,000 278,580 255,000 230,500 $523,000 $445,688 $ 377,500 $129.900 $ 75,250 $ 51,250 98,500 101.500 83.500 163.500 163,500 163,500 131, 182 184,75 79,250 $523,000 $445,$ 377,500 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 2017 $673,588 $411.225 209.550 12,100 9.525 642,488 $ 31,10 2016 $ 532,000 $ 345,500 134,988 13,300 8,845 502.625 $ 29, 375 Earnings per share $ 1.90 1.88 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 $ 3e.ee 28.80 0.29 0.24 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 Compute the return on common stockholders' equity for each year. Choose Numerator: Return On Common Stockholders' Equity. 1 Choose Denominator: 1 = Return On Common Stockholders' Equity = Return on common stockholders' equity 2017 2016 - 11- Connon stock market price, December 31, 2017 Connon stock market price, December 31, 2016 Annual cash dividends per share in 2017 Annual cash dividends per share in 2016 $ 3e.ee 28.80 0.29 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 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-earings ratio 2017 2016 Additional Information about the company follows. $ 3e.ee 28.89 Conmon stock market price, December 31, 2017 Conmon stock market price, December 31, 2016 Annual cash dividends per share in 2017 Annual cash dividends per share in 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the dividend yield for each year. (Round your answers to 2 decimal places.) Choose Numerator: Dividend Yield Choose Denominator = = Dividend Yield Dividend vield 2017 2016-