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 $ 793 2,428 $3,221 2019 2018 $883 1,734 $2,617 Current assets $1,021 1,935 $2,956 Other assets Total assets Current liabilities Long-term liabilities Stockholders' equity $ 592 1,607 1,022 $3,221 $ 845 1,070 1,041 $ 742 942 933 Total liabilities and stockholders' equity $2,956 $2,617 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 Operating income Interest expense Net income Other data: Average number of common shares outstanding Total dividends paid $2.928 325 80 231 $3,065 311 99 236 42.8 $ 65.0 48.2 $ 53.8 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. 20 and 2019
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 $ 793 2,428 $3,221 2019 2018 $883 1,734 $2,617 Current assets $1,021 1,935 $2,956 Other assets Total assets Current liabilities Long-term liabilities Stockholders' equity $ 592 1,607 1,022 $3,221 $ 845 1,070 1,041 $ 742 942 933 Total liabilities and stockholders' equity $2,956 $2,617 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 Operating income Interest expense Net income Other data: Average number of common shares outstanding Total dividends paid $2.928 325 80 231 $3,065 311 99 236 42.8 $ 65.0 48.2 $ 53.8 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. 20 and 2019
Chapter1: Financial Statements And Business Decisions
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