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Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:   WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions)   2020 2019 2018 Current assets $ 685   $ 917   $ 773   Other assets   2,417     1,924     1,723   Total assets $ 3,102   $ 2,841   $ 2,496   Current liabilities $ 581   $ 816   $ 714   Long-term liabilities   1,510     995     860   Stockholders’ equity   1,011     1,030     922   Total liabilities and stockholders' equity $ 3,102   $ 2,841   $ 2,496       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 $ 3,054   $ 2,917   Operating income   300     314   Interest expense   88     69   Net income   203     198   Other data:             Average number of common shares outstanding   41.7     47.1   Total dividends paid $ 54.0   $ 52.7       Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.        Debt Ratio   2020 = ?  2019 = ?        Debt/Equity Ratio  2020 = ?   2019 =  ?   2. Calculate the times interest earned ratio for 2020 and 2019    Times Interest Earned 2020 =  ?  Times    Times Interest Earned 2019 =  ?  Times

Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:   WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions)   2020 2019 2018 Current assets $ 685   $ 917   $ 773   Other assets   2,417     1,924     1,723   Total assets $ 3,102   $ 2,841   $ 2,496   Current liabilities $ 581   $ 816   $ 714   Long-term liabilities   1,510     995     860   Stockholders’ equity   1,011     1,030     922   Total liabilities and stockholders' equity $ 3,102   $ 2,841   $ 2,496       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 $ 3,054   $ 2,917   Operating income   300     314   Interest expense   88     69   Net income   203     198   Other data:             Average number of common shares outstanding   41.7     47.1   Total dividends paid $ 54.0   $ 52.7       Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.        Debt Ratio   2020 = ?  2019 = ?        Debt/Equity Ratio  2020 = ?   2019 =  ?   2. Calculate the times interest earned ratio for 2020 and 2019    Times Interest Earned 2020 =  ?  Times    Times Interest Earned 2019 =  ?  Times

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:

 

WIPER INC.
Condensed Balance Sheets
December 31, 2020, 2019, 2018
(in millions)
  2020 2019 2018
Current assets $ 685   $ 917   $ 773  
Other assets   2,417     1,924     1,723  
Total assets $ 3,102   $ 2,841   $ 2,496  
Current liabilities $ 581   $ 816   $ 714  
Long-term liabilities   1,510     995     860  
Stockholders’ equity   1,011     1,030     922  
Total liabilities and stockholders' equity $ 3,102   $ 2,841   $ 2,496  
 

 

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 $ 3,054   $ 2,917  
Operating income   300     314  
Interest expense   88     69  
Net income   203     198  
Other data:            
Average number of common shares outstanding   41.7     47.1  
Total dividends paid $ 54.0   $ 52.7  
 

 

  1. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.

       Debt Ratio   2020 = ?  2019 = ?

       Debt/Equity Ratio  2020 = ?   2019 =  ?

 

2. Calculate the times interest earned ratio for 2020 and 2019

   Times Interest Earned 2020 =  ?  Times

   Times Interest Earned 2019 =  ?  Times

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