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 $ 31,500 $ 35,000 $ 37,400 88,500 64,90059,100 52,370 84,000 53,000 10,165 10,603 3,628 352,465 300,497 186,872 $535,000 $495,000 $340,000 $133,215 $ 81,145 $ 44,880 102,592 117,266 74,389 162,500 162,500 136,693 134,089 58,231 $535,000 $495,000 $340,000 The company's income statements for the years ended December 31, 2017 and 2016, follow. For Year Ended December 31 2016 Sales $ 695,500 S 589,050 Cost of goods sold $424, 255 $382,883 Other operating expenses 215, 605 149,030 Interest expense 13,548 Income taxes 8,836 Total costs and expenses Net income Earnings per share 042 660 726 554, 297 S 34.75 Drew 4 of 4 R Earnings per share $ $ 2.14 2.14 $ 2.14 2.14 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 $31.00 29.00 0.36 0.18 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. 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 Stockholde 1 Choos Choose Numerator: 2017 2016 -2 - Common Stockholders' Equity 7 Choose Denominator: Return On Common Stockholders' Equity Return on common stockholders' equity 1 = Required 2 > 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 | Choose Denominator: Choose Numerator: Price-Earnings Ratio Price-earnings ratio 2017 2016 Required 3 > 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 yield 2017 2016
