from the balance sheets and income statements of Wiper, Inc.: Ratio analysis-comprehensive problem Presented here are summarized dat= WIPER, INC. Condensed Balance Sheets December 31, 2014, 2013, 2012 (in millions) 2014 2013 2012 $ 677 $ 891 $ 736 Current assets. 2,413 1,920 1,719 Other assets $3,090 $2,811 $2,455 $ 562 $ 803 $ 710 Current liabilities Long-term liabilities. Stockholders' equity. 1,521 982 827 1,007 1,026 918 $3,090 $2,811 $2,455 WIPER, INC. Selected Income Statement and Other Data For the Years Ended December 31, 2014 and 2013 (in millions) 2014 2013 Income statement data: $3,050 296 $2,913 310 Sales.... Operating income. Interest expense. Net income Other data: 65 84 192 187 46.7 41.3 Average number of common shares outstanding. Total dividends paid. $ 50.0 $ 52.3

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Chapter1: Financial Statements And Business Decisions
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from the balance sheets and income statements of Wiper, Inc.:
Average number of common shares outstanding.
Ratio problem Presented here are summarized data
WIPER, INC.
Condensed Balance Sheets
December 31, 2014, 2013, 2012
(in millions)
2014
2013
2012
$ 677
$ 891
$ 736
Current assets.
2,413
1,920
1,719
Other assets
$3,090
$2,811
$2,455
$ 562
$ 803
$ 710
Current liabilities
Long-term liabilities.
Stockholders' equity
1,521
982
827
1,007
1,026
918
$3,090
$2,811
$2,455
WIPER, INC.
Selected Income Statement and Other Data
For the Years Ended December 31, 2014 and 2013
(in millions)
2014
2013
Income statement data:
Sales....
$3,050
$2,913
296
310
Operating income.
Interest expense.
Net income
Other data:
65
84
187
192
46.7
41.3
Total dividends paid.
$ 50.0
$ 52.3
Transcribed Image Text:from the balance sheets and income statements of Wiper, Inc.: Average number of common shares outstanding. Ratio problem Presented here are summarized data WIPER, INC. Condensed Balance Sheets December 31, 2014, 2013, 2012 (in millions) 2014 2013 2012 $ 677 $ 891 $ 736 Current assets. 2,413 1,920 1,719 Other assets $3,090 $2,811 $2,455 $ 562 $ 803 $ 710 Current liabilities Long-term liabilities. Stockholders' equity 1,521 982 827 1,007 1,026 918 $3,090 $2,811 $2,455 WIPER, INC. Selected Income Statement and Other Data For the Years Ended December 31, 2014 and 2013 (in millions) 2014 2013 Income statement data: Sales.... $3,050 $2,913 296 310 Operating income. Interest expense. Net income Other data: 65 84 187 192 46.7 41.3 Total dividends paid. $ 50.0 $ 52.3
Calculate return on investment, based on net income and average total assets, for
2014 and 2013. Show both margin and turnover in your calculation.
b. Calculate return on equity for 2014 and 2013.
Calculate working capital and the current ratio for each of the past three years.
d. Calculate earnings per share for 2014 and 2013.
If Wiper's stock had a price/earnings ratio of 13 at the end of 2014, what was
the market price of the stock?
a.
с.
е.
f.
Calculate the cash dividend per share for 2014 and the dividend yield based on
the market price calculated in part e.
g. Calculate the dividend payout ratio for 2014.
h. Assume that accounts receivable at December 31, 2014, totaled $309 million.
Calculate the number of days' sales in receivables at that date.
Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2014 and
i.
2013.
j. Calculate the times interest earned ratio for 2014 and 2013.
k. Review the results of these calculations, evaluate the profitability and liquidity
of this company, and state your opinion about its suitability as an investment for
a young, single professional with funds to invest in common stock.
Transcribed Image Text:Calculate return on investment, based on net income and average total assets, for 2014 and 2013. Show both margin and turnover in your calculation. b. Calculate return on equity for 2014 and 2013. Calculate working capital and the current ratio for each of the past three years. d. Calculate earnings per share for 2014 and 2013. If Wiper's stock had a price/earnings ratio of 13 at the end of 2014, what was the market price of the stock? a. с. е. f. Calculate the cash dividend per share for 2014 and the dividend yield based on the market price calculated in part e. g. Calculate the dividend payout ratio for 2014. h. Assume that accounts receivable at December 31, 2014, totaled $309 million. Calculate the number of days' sales in receivables at that date. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2014 and i. 2013. j. Calculate the times interest earned ratio for 2014 and 2013. k. Review the results of these calculations, evaluate the profitability and liquidity of this company, and state your opinion about its suitability as an investment for a young, single professional with funds to invest in common stock.
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