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 $ 31,700 $ 34,700 $ 36,500 88,600 62,300 51,000 62,208 84,900 51,200 10,148 10,175 3,815 352, 344 282,925 197,485 $545,000 $475,000 $ 340,000 $135,705 $ 81,078 $ 45,778 99,386 187,065 77,394 162,500 162,500 162,500 147,409 124, 357 54,328 $545,000 $475,000 $ 340,000 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 2017 $708,500 $432,185 2016 $ 565,250 $367,413 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 $708,500 $432,185 219,635 12,045 9,211 673,076 $ 35,424 $ 2.18 2016 $ 565,250 $367,413 143,008 13,001 8,479 531, 901 $ 33,349 $ 2.05 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 $ 28.ee 26.ee 0.30 2.15 To help evaluate the company's profitability, compute the following ratios for 2017 and 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 return on common stockholders' equity for each year. Choose Numerator: Return On Common Stockholders' Equity Choose Denom 2017 2016 7 ering your answers in the tabs below. red 3 ockholders' equity for each year. Return On Common Stockholders' Equity 1 Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders' equity Choose Numerator Required 2 > 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 Choose Denominator: Choose Numerator: = Price-Earnings Ratio Price-earnings ratio 1 11 2017 2016 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.) Dividend Yield 1 Choose Denominator: Choose Numerator: = Dividend Yield Dividend yield % 2017 = % 2016
