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 $ 32,000 $ 35,500 $ 37,800 89,500 62,000 49,500 110,500 80,800 53,000 10,850 9,300 4,700 279,000 ,249,500 232,000 $521,850 $437,100 $377,000 $129,200 $ 74,000 $ 50, 600 97,500 100,500 81,200 160,500 160,500 160,500 134,650 102,100 84,700 $521,850 $437,100 $377,000 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 operating expenses 2017 $695,000 $423,950 194,600 2016 $530,000 $333,900 127,200 $695,000 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share $423,950 194,600 12,300 9,450 $530,000 $333,900 127,200 13,300 8,600 483,000 $ 47,000 $ 2.93 640, 300 $ 54,700 $ 3.41 Evaluate the company's efficiency and profitability by computing the following for 2017 and 2 Exercise 13-10 Part 1 (1) Profit margin ratio. Profit Margin Ratio 1 Choose Denominator: Choose Numerator: Net income 2017 Net sales 11 III Profit Margin Ratio Profit margin ratio 0 % 0 % 2016 (2) Total asset turnover. Choose Numerator: Net sales Total Asset Turnover | Choose Denominator: Average total assets Total Asset Turnover Total asset turnover 0 times 2017 = 2016 11 0 times (3) Return on total assets. Choose Numerator: Net income 2017 Return On Total Assets Choose Denominator: / Average total assets 1 11 Return On Total Assets Return on total assets 0 % 0 % 11 2016 11 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 $ 31,600 $ 34,600 $ 36,300 88,800 62,700 58,000 45, 156 82,100 59,000 9,682 9,532 3,927 344,762 256,068 192,773 $520,000 $445,000 $350,000 $128,185 $ 73,701 $ 45,738 98,738 101,326 75,803 162,500 162,500 162,500 130,577 107,473 65,959 $520,000 $445,000 $350,000 The company's income statements for the years ended December 31, 2017 and 2016, follo For Year Ended December 31 Sales Cost of goods sold 2017 $676,000 $412,360 2016 $529,550 $344,208 ra 07 $676,00 $529,559 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income Earnings per share $412,360 209,560 11,492 8,788 $344, 208 133,976 12, 180 7,943 642,200 $ 33,800 498,307 $ 31,243 $ 2.08 $ 1.92 Additional information about the company follows. Common stock market price, December 31, 2017 $31.00 Common stock market price, December 31, 2016 29.00 Annual cash dividends per share in 2017 0.32 Annual cash dividends per share in 2016 0.16 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 38 bouts Complete this question by entering your answers in the tabs below. Hin wquired 1 Required 2 Required ompute the return on common stockholders' equity for each year Print Betim (in common Seckholders Choose tellator Choose Nimeo Remon Go Reco 17 16 Required > 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 II 1 2017 2016 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 11 %
