ch. 11

Presented here are summarized data from the balance sheets and income statements of Wiper, Inc.:

WIPER, INC.
Condensed Balance Sheets
December 31, 2017, 2016, 2015
(in millions)
	2017			2016			2015
Current assets	$	764		$	981		$	843
Other assets		2,424			1,931			1,730
Total assets	$	3,188		$	2,912		$	2,573
Current liabilities	$	588		$	841		$	734
Long-term liabilities		1,582			1,034			910
Stockholders equity		1,018			1,037			929
Total liabilities and stockholders' equity	$	3,188		$	2,912		$	2,573

WIPER, INC
Selected Income Statement and Other Data
For the year Ended December 31, 2017 and 2016
(in millions)
	2017			2016
Income statement data:
Sales	$	3,061		$	2,924
Operating income		307			321
Interest expense		95			76
Net income		224			219
Other data:
Average number of common shares outstanding		42.4			47.8
Total dividends paid	$	61.0		$	53.4
Required: a. Calculate return on investment, based on net income and average total assets, for 2017 and 2016. b. Calculate return on equity for 2017 and 2016. c. Calculate working capital and the current ratio for each of the past three years. d. Calculate earnings per share for 2017 and 2016 e. If Wiper's stock had a price/earnings ratio of 12 at the end of 2017, what was the market price of the stock?