Simon Company\'s year-end balance sheets follow 2017 2016 2015 At December 31 As

Question

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 $ 31,300 $ 35,000 37,200 57,900 83,300 50,500 4,138 388,954 258,266 230,262 $565, 000 $450,000 $380,000 89,100 63,700 45,126 10,520 9,734 $139,278 $ 77,571 50,662 mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 300 162,500 162,500 162,500 84,538 $565,000 $450,000 $380,000 104,096 104,535 82, 159,126 105,394 The company's income statements for the years ended December 31, 2017 and 2016, follow 2017 2016 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income taxes Total costs and expenses Net income $734,500 $535,500 $448,045 227,695 12,487 9,549 $348,075 135,482 12,317 8,033 697,776 36,724 $ 2.26 503,907 $ 31,593 $1.94 Earnings per share 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 0.22 0.11 To help evaluate the company's profitability, compute the following ratios for 2017 and 2016

Explanation / Answer

Return on common stockholder equity net income Preferred dividend / Avg common stockholder equity Return on common stockholder equity 2017 36734 0 294760 12.5 % (162500+159126+162500+105394)/2 2016 31593 0 257466 12.3 % (162500+84538+162500+105394)/2 Price earning ratio MPS EPS Price earning ratio 2017 31 / 2.26 13.7 2016 29 / 1.94 14.9 Dividend yield ratio Cash dividend per share/ Market price per share Dividend yield ratio 2017 0.22 / 31 0.007 2016 0.11 / 29 0.004 if in % 0.71 0.38 If any doubt please comment

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