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Simon Companys year-end balance sheets follow. At December 31 2018 2017 2016 Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500
Simon Companys year-end balance sheets follow.
At December 31 | 2018 | 2017 | 2016 | ||||||
Assets | |||||||||
Cash | $ | 31,800 | $ | 35,625 | $ | 37,800 | |||
Accounts receivable, net | 89,500 | 62,500 | 50,200 | ||||||
Merchandise inventory | 112,500 | 82,500 | 54,000 | ||||||
Prepaid expenses | 10,700 | 9,375 | 5,000 | ||||||
Plant assets, net | 278,500 | 255,000 | 230,500 | ||||||
Total assets | $ | 523,000 | $ | 445,000 | $ | 377,500 | |||
Liabilities and Equity | |||||||||
Accounts payable | $ | 129,900 | $ | 75,250 | $ | 51,250 | |||
Long-term notes payable secured by mortgages on plant assets | 98,500 | 101,500 | 83,500 | ||||||
Common stock, $10 par value | 163,500 | 163,500 | 163,500 | ||||||
Retained earnings | 131,100 | 104,750 | 79,250 | ||||||
Total liabilities and equity | $ | 523,000 | $ | 445,000 | $ | 377,500 | |||
The companys income statements for the years ended December 31, 2018 and 2017, follow.
For Year Ended December 31 | 2018 | 2017 | ||||||||||
Sales | $ | 673,500 | $ | 532,000 | ||||||||
Cost of goods sold | $ | 411,225 | $ | 345,500 | ||||||||
Other operating expenses | 209,550 | 134,980 | ||||||||||
Interest expense | 12,100 | 13,300 | ||||||||||
Income taxes | 9,525 | 8,845 | ||||||||||
Total costs and expenses | 642,400 | 502,625 | ||||||||||
Net income | $ | 31,100 | $ | 29,375 | ||||||||
Earnings per share | $ | 1.90 | $ | 1.80 | ||||||||
Additional information about the company follows.
Common stock market price, December 31, 2018 | $ | 30.00 |
Common stock market price, December 31, 2017 | 28.00 | |
Annual cash dividends per share in 2018 | 0.29 | |
Annual cash dividends per share in 2017 | 0.24 | |
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.
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 o Return On Common Stockholders' Equity I Choose Denominator: | / Average common stockholders' equity I $ - Return Choose Numerator: Preferred dividends 31,1001 - 29,375 - Net income 2018 $ 2017 $ 28 = 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. Price-Earnings Ratio Choose Denominator: Choose Numerator: Price-Earnings Ratio Price-earnings ratio 2018 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 dividend yield for each year. Dividend Yield Choose Denominator: Choose Numerator: = Dividend Yield Dividend yield 2018 IIII 2017 0 %
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