Current assets Other assets Total assets WIPER INCORPORATED Condensed Balance Sheets December 31, 2023, 2022, 2021 (in millions) Current liabilities Long-term liabilities 2023 $ 805 2,430 2022 $1,041 1,937 $ 3,235 $ 2,978 $594 $847 1,617 1,088 2021 $ 903 1,736 $ 2,639 $749 955 1,024 1,043 935 $ 3,235 $ 2,978 $ 2,639 Stockholders' equity Total liabilities and stockholders' equity WIPER INCORPORATED Selected Income Statement and Other Data For the Years Ended December 31, 2023 and 2022 (in millions) Income statement data: Sales Operating income Net income Interest expense Average number of common shares outstanding Other data: Total dividends paid Required: 2023 2022 $3,067 313 $ 2,930 327 101 82 242 237 43.0 48.4 $ 67.0 $ 54.0 a. Calculate return on investment, based on net income and average total assets, for 2023 and 2022. b. Calculate return on equity for 2023 and 2022. c. Calculate working capital and the current ratio for each of the past three years. d. Calculate earnings per share for 2023 and 2022. e. If Wiper's stock had a price/earnings ratio of 13 at the end of 2023, what was the market price of the stock? f. Calculate the cash dividend per share for 2023 and the dividend yield based on the market price calculated in part e. g. Calculate the dividend payout ratio for 2023. h. Assume that accounts receivable at December 31, 2023, totaled $326 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, 2023 and 2022. j. Calculate the times interest earned ratio for 2023 and 2022.
Current assets Other assets Total assets WIPER INCORPORATED Condensed Balance Sheets December 31, 2023, 2022, 2021 (in millions) Current liabilities Long-term liabilities 2023 $ 805 2,430 2022 $1,041 1,937 $ 3,235 $ 2,978 $594 $847 1,617 1,088 2021 $ 903 1,736 $ 2,639 $749 955 1,024 1,043 935 $ 3,235 $ 2,978 $ 2,639 Stockholders' equity Total liabilities and stockholders' equity WIPER INCORPORATED Selected Income Statement and Other Data For the Years Ended December 31, 2023 and 2022 (in millions) Income statement data: Sales Operating income Net income Interest expense Average number of common shares outstanding Other data: Total dividends paid Required: 2023 2022 $3,067 313 $ 2,930 327 101 82 242 237 43.0 48.4 $ 67.0 $ 54.0 a. Calculate return on investment, based on net income and average total assets, for 2023 and 2022. b. Calculate return on equity for 2023 and 2022. c. Calculate working capital and the current ratio for each of the past three years. d. Calculate earnings per share for 2023 and 2022. e. If Wiper's stock had a price/earnings ratio of 13 at the end of 2023, what was the market price of the stock? f. Calculate the cash dividend per share for 2023 and the dividend yield based on the market price calculated in part e. g. Calculate the dividend payout ratio for 2023. h. Assume that accounts receivable at December 31, 2023, totaled $326 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, 2023 and 2022. j. Calculate the times interest earned ratio for 2023 and 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current assets
Other assets
Total assets
Current liabilities
Long-term liabilities
WIPER INCORPORATED
Condensed Balance Sheets
December 31, 2023, 2022, 2021
(in millions)
2023
$ 805
2,430
$ 3,235
$ 594
2022
$ 1,041
1,937
$ 2,978
2021
$ 903
1,736
$ 2,639
$847
$ 749
1,617
1,088
955
1,024
1,043
935
$ 3,235
$ 2,978
$ 2,639
Stockholders' equity
Total liabilities and stockholders' equity
WIPER INCORPORATED
Selected Income Statement and Other Data,
For the Years Ended December 31, 2023 and 2022
(in millions)
Income statement data:
Sales
Operating income
Interest expense
Net income
Other data:
Average number of common shares outstanding
Total dividends paid
Required:
2023
2022
$ 3,067
$ 2,930
313
327
101
82
242
237
43.0
$67.0
48.4
$ 54.0
a. Calculate return on investment, based on net income and average total assets, for 2023 and 2022.
b. Calculate return on equity for 2023 and 2022.
c. Calculate working capital and the current ratio for each of the past three years.
d. Calculate earnings per share for 2023 and 2022.
e. If Wiper's stock had a price/earnings ratio of 13 at the end of 2023, what was the market price of the stock?
f. Calculate the cash dividend per share for 2023 and the dividend yield based on the market price calculated in part e.
g. Calculate the dividend payout ratio for 2023.
h. Assume that accounts receivable at December 31, 2023, totaled $326 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, 2023 and 2022.
J. Calculate the times interest earned ratio for 2023 and 2022.
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