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Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. (Round "Debt ratio" to 1 decimal place and "Debt/equity ratio" to the nearest whole percent.) 2020 2019 Debt ratio 68.2 % % Debt/equity ratio % % < Req E to H Req J >

Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. (Round "Debt ratio" to 1 decimal place and "Debt/equity ratio" to the nearest whole percent.) 2020 2019 Debt ratio 68.2 % % Debt/equity ratio % % < Req E to H Req J >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 2019 2018 $ $1,001 $ 1,732 Current assets 781 863 Other assets 2,426 1,933 Total assets $3,207 $2,934 $2,595 Current liabilities $ 590 $ 843 $ 736 Long-term liabilities Stockholders' equity 1,597 1,052 928 1,020 1,039 931 Total liabilities and stockholders' equity $3,207 $2,934 $2,595 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 2019 Income statement data: Sales $3,063 $2,926 Operating income Interest expense 309 323 97 78 Net income 230 225 Other data: Average number of common shares outstanding Total dividends paid 42.6 48.0 $ 63.0 $ 53.6 Required: a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. b. Calculate return on equity for 2020 and 2019. c. Calculate working capital and the current ratio for each of the past three years. d. Calculate earnings per share for 2020 and 2019. e. If Wiper's stock had a price/earnings ratio of 10 at the end of 2020, what was the market price of the stock? f. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e. g. Calculate the dividend payout ratio for 2020. h. Assume that accounts receivable at December 31, 2020, totaled $322 million. Calculate the number of days' sales in receivables at that date. i. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. j. Calculate the times interest earned ratio for 2020 and 2019. Complete this question by entering your answers in the tabs below. Reg A and B Reg C Reg D Reg E to H Reg I Reg J
Transcribed Image Text:WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 2019 2018 $ $1,001 $ 1,732 Current assets 781 863 Other assets 2,426 1,933 Total assets $3,207 $2,934 $2,595 Current liabilities $ 590 $ 843 $ 736 Long-term liabilities Stockholders' equity 1,597 1,052 928 1,020 1,039 931 Total liabilities and stockholders' equity $3,207 $2,934 $2,595 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 2019 Income statement data: Sales $3,063 $2,926 Operating income Interest expense 309 323 97 78 Net income 230 225 Other data: Average number of common shares outstanding Total dividends paid 42.6 48.0 $ 63.0 $ 53.6 Required: a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. b. Calculate return on equity for 2020 and 2019. c. Calculate working capital and the current ratio for each of the past three years. d. Calculate earnings per share for 2020 and 2019. e. If Wiper's stock had a price/earnings ratio of 10 at the end of 2020, what was the market price of the stock? f. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e. g. Calculate the dividend payout ratio for 2020. h. Assume that accounts receivable at December 31, 2020, totaled $322 million. Calculate the number of days' sales in receivables at that date. i. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. j. Calculate the times interest earned ratio for 2020 and 2019. Complete this question by entering your answers in the tabs below. Reg A and B Reg C Reg D Reg E to H Reg I Reg J
(in millions) 2020 2019 Income statement data: Sales $3,063 $2,926 Operating income Interest expense 309 323 97 78 Net income 230 225 Other data: Average number of common shares outstanding Total dividends paid 42.6 48.0 $ 63.0 $ 53.6 Required: a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. b. Calculate return on equity for 2020 and 2019. c. Calculate working capital and the current ratio for each of the past three years. d. Calculate earnings per share for 2020 and 2019. e. If Wiper's stock had a price/earnings ratio of 10 at the end of 2020, what was the market price of the stock? f. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e. g. Calculate the dividend payout ratio for 2020. h. Assume that accounts receivable at December 31, 2020, totaled $322 million. Calculate the number of days' sales in receivables at that date. i. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. j. Calculate the times interest earned ratio for 2020 and 2019. Complete this question by entering your answers in the tabs below. Req A and B Req C Req D Req E to H Req I Req J Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. (Round "Debt ratio" to 1 decimal place and "Debt/equity ratio" to the nearest whole percent.) 2020 2019 Debt ratio 68.2 % % Debt/equity ratio % % < Req E to H Req J >
Transcribed Image Text:(in millions) 2020 2019 Income statement data: Sales $3,063 $2,926 Operating income Interest expense 309 323 97 78 Net income 230 225 Other data: Average number of common shares outstanding Total dividends paid 42.6 48.0 $ 63.0 $ 53.6 Required: a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. b. Calculate return on equity for 2020 and 2019. c. Calculate working capital and the current ratio for each of the past three years. d. Calculate earnings per share for 2020 and 2019. e. If Wiper's stock had a price/earnings ratio of 10 at the end of 2020, what was the market price of the stock? f. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e. g. Calculate the dividend payout ratio for 2020. h. Assume that accounts receivable at December 31, 2020, totaled $322 million. Calculate the number of days' sales in receivables at that date. i. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. j. Calculate the times interest earned ratio for 2020 and 2019. Complete this question by entering your answers in the tabs below. Req A and B Req C Req D Req E to H Req I Req J Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. (Round "Debt ratio" to 1 decimal place and "Debt/equity ratio" to the nearest whole percent.) 2020 2019 Debt ratio 68.2 % % Debt/equity ratio % % < Req E to H Req J >
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