Exercise 13-11 Profitability analysis LO P3 Simon Company's year-end balance sheets follow At December 3 2017 20162015 AssetsS Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant aasets,net Total a3sets Liabilities and Equity Accounts payable Long-term notes payable secured by s 31,600 34,100 36, 000 88,300 63, 900 51,400 55,955 84,400 59, 100 10, 689 9,563 4,419 393, 456 268,037 239, 081 $580,000 $460, 000 $390,000 $148,753 $ 78,517 52,510 mortgages on plant assets Common stock, $10 par value Retained earnings Total iiabilities and equity 105,769 108, 974 87,914 162, 500 162, 500 162, 500 162,978 110,009 87,076 $580, 000 $460,000 $390,000 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 2017 2016 $754, 000 $547, 400 Cost of goods sold Other operating expenees $459, 940 233,740 $355, 8120 138, 492 Prey 1 of 1 Next He to search 8 5 6 8 Saved mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 105, 769 108, 974 87,914 162, 500 162,500 162, 500 162, 978 110,009 87,076 $580, 000 $460,000 $390, 000 The company's income statements for the years ended December 31, 2017 and 2016, follow. $754,000 $547,400 Sales Cost of goods sold Other operating expenses Interest expense Income taxe $459,940 233,740 12, 818 9, 802 $355, 810 138, 492 12,590 0, 211 Total costs and expenses Net income 716, 300 s 37,700 $2.32 515, 103 32,297 1.99 Earnings per share Additional information about the company follows Conmon stock market price, December 31, 2017 Common stock market price, December 31, 2016 Annual cash dividends per share in 2017 $30.g0 28.00 o.30 0.15 Annual cash dividends per share in 2016 To help evaluate the companv's profitability, compute the following ratios for 2017 and 2016 Prev 1 of 1Next e to search 8 6 8 To help evaluate the company's profitability, compute the following ratios for 2017 and 2016 2. Price earnings ratio on December 31 3. Dividend yield. ped Complete this question by entering your answers in the tabs below. ok Required 1 Required 2 Required 3 nt Compute the return on common stockholders' equity for each year. Choose Numerator: Choose nces Return on cor 2017 2016 Required 2> Prev 1of 1 EE Next 3 5:37 PM /20/2019 to search 2000