Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I am so lost on this homework. I have read everything and cant seem to get it done. I have put in the answer I
I am so lost on this homework. I have read everything and cant seem to get it done. I have put in the answer I know.
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) Current assets Other assets Total assets Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity 2017 $ 685 2,417 $3,102 2016 $ 917 1,924 $2,841 2015 $ 773 1,723 $2,496 $ 581 1,510 1,011 $3,102 $ 816 995 1,030 $2,841 $ 714 860 922 $2,496 WIPER, INC Selected Income Statement and Other Data For the year Ended December 31, 2017 and 2016 (in millions) Income statement data: Sales Operating income Interest expense Net income Other data: Average number of common shares outstanding Total dividends paid 2017 2016 $3,054 300 88 203 $2,917 314 69 198 41.7 $ 54.0 47.1 $ 52.7 Required: a. Calculate return on investment, based on net income and average total assets, for 2017 and 2016. (Do not round intermediate calculations. Round your answers to 1 decimal place.) 2017 Return on investment 2016 6.5 % 7.0 % b. Calculate return on equity for 2017 and 2016. (Round your answers to 1 decimal place.) 2017 Return on equity 2016 19.9 % 20.3 % c. Calculate working capital and the current ratio for each of the past three years. (Enter your answers in millions (i.e., 5,000,000 should be entered as 5). Round "Current ratio" to 1 decimal place.) 2017 Working capital Current ratio $ 2016 2015 104 $ 101 $ 59 1.2 1.1 1.1 d. Calculate earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.) 2017 Earnings per share $ 2016 4.87 $ 4.20 e. If Wiper's stock had a price/earnings ratio of 11 at the end of 2017, what was the market price of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Market price f. Calculate the cash dividend per share for 2017 and the dividend yield based on the market price calculated in part e. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Cash dividends per share Dividend yield % g. Calculate the dividend payout ratio for 2017. (Do not round intermediate calculations.) Dividend payout ratio % h. Assume that accounts receivable at December 31, 2017, totaled $313 million. Calculate the number of days' sales in receivables at that date. (Use 365 days a year. Do not round intermediate calculations.) Number of days' sales days i. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2017 and 2016. (Round "Debt ratio" to 1 decimal place and "Debt/equity ratio" to the nearest whole percent.) 2017 2016 Debt ratio % % Debt/equity ratio % % j. Calculate the times interest earned ratio for 2017 and 2016. (Round your answers to 1 decimal place.) 2017 Times interest earned times 2016 times rev: 12_21_2016_QC_CS-72879 References Worksheet Check my work Difficulty: 2 MediumStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started