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 $ 679 $ 898 $ 743 Other assets 2,414 1,921 1,720 Total assets $ 3,093 $ 2,819 $ 2,463 Current liabilities $ 563 $ 804 $ 711 Long-term liabilities 1,522 988 833 Stockholders’ equity 1,008 1,027 919 Total liabilities and stockholders' equity $ 3,093 $ 2,819 $ 2,463 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 $ 3,051 $ 2,914 Operating income 297 311 Interest expense 85 66 Net income 194 189 Other data: Average number of common shares outstanding 41.4 46.8 Total dividends paid $ 51.0 $ 52.4 Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 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 2019 2018 Current assets $ 679 $ 898 $ 743 Other assets 2,414 1,921 1,720 Total assets $ 3,093 $ 2,819 $ 2,463 Current liabilities $ 563 $ 804 $ 711 Long-term liabilities 1,522 988 833 Stockholders’ equity 1,008 1,027 919 Total liabilities and stockholders' equity $ 3,093 $ 2,819 $ 2,463 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 $ 3,051 $ 2,914 Operating income 297 311 Interest expense 85 66 Net income 194 189 Other data: Average number of common shares outstanding 41.4 46.8 Total dividends paid $ 51.0 $ 52.4 Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.
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 | $ | 679 | $ | 898 | $ | 743 | |||
| Other assets | 2,414 | 1,921 | 1,720 | ||||||
| Total assets | $ | 3,093 | $ | 2,819 | $ | 2,463 | |||
| Current liabilities | $ | 563 | $ | 804 | $ | 711 | |||
| Long-term liabilities | 1,522 | 988 | 833 | ||||||
| 1,008 | 1,027 | 919 | |||||||
| Total liabilities and stockholders' equity | $ | 3,093 | $ | 2,819 | $ | 2,463 | |||
| 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 | $ | 3,051 | $ | 2,914 | ||
| Operating income | 297 | 311 | ||||
| Interest expense | 85 | 66 | ||||
| Net income | 194 | 189 | ||||
| Other data: | ||||||
| Average number of common shares outstanding | 41.4 | 46.8 | ||||
| Total dividends paid | $ | 51.0 | $ | 52.4 | ||
- Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.
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