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I need some help understanding this please. Exercise 13-11 Profitability analysis LO P3 Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015

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I need some help understanding this please.

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Exercise 13-11 Profitability analysis LO P3 Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 31,500 $ 34,100 $ 37,500 Accounts receivable, net 88,200 64,400 51,900 Merchandise inventory 58,603 83,800 50,100 Prepaid expenses 10,764 9,979 4,138 Plant assets, net 360,933 287,721 236,362 Total assets $550,000 $480,000 $380,000 Liabilities and Equity Accounts payable $141,059 $ 81,120 $ 50,160 Long-term notes payable secured by mortgages on plant assets 105,468 112,608 86,499 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 140,973 123,772 80,841 Total liabilities and equity $550,000 $480,000 $380,000 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 2017 2016 Sales $715,000 $571,200 Cost of goods sold $436,150 $371,280 other operating expenses 221,650 144,514 Interest expense 12,155 13,138 Income taxes 9,295 8,568 Total costs and expenses 679,250 537,500 Net income 5 35,750 $ 33,700 Earnings per share $ 2.20 $ 2.07 Additional information about the company follows. 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. Return On Common Stockholders' Equity. Choose Numerator: / Choose Denominator: = Return On Common Stockholder = Return on common stockholders' 2017 2016 E

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