Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Simon Company's year-end balance sheets follow. 2018 2017 2016 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total
Simon Company's year-end balance sheets follow. 2018 2017 2016 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 Comon stock, $10 par value Retained earnings Total liabilities and equity $ 31, 600 90,000 100,965 9,969 297, 466 $530,000 $ 35,000 62, 700 84,500 8,836 233,964 $425,000 $ 37, 300 5 2, 800 59, 300 3, 740 186, 860 $ 340,000 $134, 609 $ 71,825 $ 44, 431 98,644 162, 500 134, 247 $530,000 96,772 162,500 93, 903 $425,000 73,637 162,500 59, 432 $ 340,000 The company's income statements for the years ended December 31, 2018 and 2017, 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 2018 $ 689,000 $ 420, 290 213, 590 11, 713 8, 957 654, 550 $ 34, 450 $ 2.12 2017 $ 505, 750 $ 328, 738 127,955 11,632 7, 586 475, 911 $ 29, 839 $ 1.84 Additional information about the company follows. Common stock market price, December 31, 2018 Common stock market price, December 31, 2017 Annual cash dividends per share in 2018 Annual cash dividends per share in 2017 $ 29.00 27.00 0.30 0.15 To help evaluate the company's profitability, compute the following ratios for 2018 and 2017: 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 1 Choose Denominator: Choose Numerator: Return On Common Stockholders' Equity Return on common stockholders' equity 2018: 2017: Required 1 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. Price-Earnings Ratio 1 Choose Denominator: Choose Numerator: = Price-Earnings Ratio Price-earnings ratio 2018: 2017: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the dividend yield for each year. Dividend Yield 1 Choose Denominator: Choose Numerator: = Dividend Yield Dividend yield 1 = 2018: [ 2017:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started