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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 $ 793 2,428 2018 $883 1,734 2019 $1,021 1,935 $2,956 $ 845 1,070 1,041 $2,956 Current assets Other assets Total assets $3,221 $2,617 $ 592 1,607 1,022 $ 742 942 Current liabilities Long-term liabilities Stockholders' equity 933 Total liabilities and stockholders' equity $3,221 $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 $3,065 311 $2,928 325 Operating income Interest expense Net income Other data: 99 236 88 TFZ Average number of common shares outstanding Total dividends paid 42.8 $65.0 48.2 $ 53.8 Requlred: 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. D010

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 2018 $883 1,734 2019 $1,021 1,935 $2,956 $ 845 1,070 1,041 $2,956 Current assets Other assets Total assets $3,221 $2,617 $ 592 1,607 1,022 $ 742 942 Current liabilities Long-term liabilities Stockholders' equity 933 Total liabilities and stockholders' equity $3,221 $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 $3,065 311 $2,928 325 Operating income Interest expense Net income Other data: 99 236 88 TFZ Average number of common shares outstanding Total dividends paid 42.8 $65.0 48.2 $ 53.8 Requlred: 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. D010

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $ 793 2,428 2019 $1,021 1,935 $2,956 2018 $ 883 1,734 $2,617 $ 742 942 933 Current assets Other assets Total assets $3,221 Current liabilities Long-term liabilities Stockholders' equity $ 592 1,607 1,022 $3,221 $ 845 1,070 1,041 $2,956 Total liabilities and stockholders' equity $2,617 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2819 (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 $3,065 311 99 236 $2,928 325 231 48.2 s.53.8 $ 65.0 Required: a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. b. Calculate return on ecuity for 2020 and 2019. c. Calculate working capital and the current ratlo for each of the past three years. d. Calculate eamings per share for 2020 and 2019. e. If Wiper's stock had a price/earnings ratio of 12 at the end of 2020, what was the market price of the stock? t. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e 9. Calculate the dividend payout ratio for 2020. h. Assume that accounts receivabie at December 31, 2020. totaled $324 million. Calculate the number of days' sales in receivables that date. 1. Calculate Wipers debt ratio and debt/equity ratio at December 31, 2020 and 2019.
Transcribed Image Text: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 2019 $1,021 1,935 $2,956 2018 $ 883 1,734 $2,617 $ 742 942 933 Current assets Other assets Total assets $3,221 Current liabilities Long-term liabilities Stockholders' equity $ 592 1,607 1,022 $3,221 $ 845 1,070 1,041 $2,956 Total liabilities and stockholders' equity $2,617 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2819 (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 $3,065 311 99 236 $2,928 325 231 48.2 s.53.8 $ 65.0 Required: a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. b. Calculate return on ecuity for 2020 and 2019. c. Calculate working capital and the current ratlo for each of the past three years. d. Calculate eamings per share for 2020 and 2019. e. If Wiper's stock had a price/earnings ratio of 12 at the end of 2020, what was the market price of the stock? t. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e 9. Calculate the dividend payout ratio for 2020. h. Assume that accounts receivabie at December 31, 2020. totaled $324 million. Calculate the number of days' sales in receivables that date. 1. Calculate Wipers debt ratio and debt/equity ratio at December 31, 2020 and 2019.
Requlred: Q. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. b. Calculate returm on equity for 2020 and 2019, c. Calculate working capital and the current ratio for each of the past three years. d. Calculate earnings per share for 2020 and 2019. e. If Wiper's stock had a price/earnings ratio of 12 at the end of 2020, what was the market price of the stock? 1. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e. g. Calculate the dividend payout ratio for 2020. h. Assume that accounts receivable at December 31,2020, totaled $324 million. Calculate the number of days' sales in receiv that date. 1. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. J. Calculate the times interest earned ratio for 2020 and 2019. nces Complete this question by entering your answers in the tabs below. Req A and B Req C Req D Req E to H Reg I Reg ) Calculate working capital and the current ratio for each of the past three years. (Enter your answers in millions (he. 5,000,000 should be entered as 5). Round "Current ratio" to1 decimal place.) 2020 2019 2018 Working capital iCurrent ratio < Req A and B < a ba 選
Transcribed Image Text:Requlred: Q. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. b. Calculate returm on equity for 2020 and 2019, c. Calculate working capital and the current ratio for each of the past three years. d. Calculate earnings per share for 2020 and 2019. e. If Wiper's stock had a price/earnings ratio of 12 at the end of 2020, what was the market price of the stock? 1. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e. g. Calculate the dividend payout ratio for 2020. h. Assume that accounts receivable at December 31,2020, totaled $324 million. Calculate the number of days' sales in receiv that date. 1. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. J. Calculate the times interest earned ratio for 2020 and 2019. nces Complete this question by entering your answers in the tabs below. Req A and B Req C Req D Req E to H Reg I Reg ) Calculate working capital and the current ratio for each of the past three years. (Enter your answers in millions (he. 5,000,000 should be entered as 5). Round "Current ratio" to1 decimal place.) 2020 2019 2018 Working capital iCurrent ratio < Req A and B < a ba 選
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