Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE HELP!!!! Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020,

PLEASE HELP!!!!
image text in transcribed
image text in transcribed
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 $ 821 $1,061 $ 923 Other assets 2,432 1,939 1,738 Total assets $3,253 $3,000 $2,661 Current liabilities $ 596 $ 849 S 751 Long-term liabilities 1,631 1,106 973 Stockholders' equity 1,026 1,045 937 Total liabilities and stockholders' equity $3,253 $3,000 $2,661 2019 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 Income statement data: Sales $3,069 Operating income 315 Interest expense 103 Net income 248 Other data: Average number of common shares outstanding 43.2 Total dividends paid $69.0 $2,932 329 84 243 48.6 $ 54.2 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. d. Calculate earnings per share for 2020 and 2019, e. If Wiper's stock had a price/earnings ratio of 13 at the end of 2020, what was the market price of the stock? f. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in parte. g. Calculate the dividend payout ratio for 2020. h. Assume that accounts receivable at December 31, 2020, totaled $309 million. Calculate the number of days' sales in receiva 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. Complete this question by entering your answers in the tabs below. Reg A and B Reg C ReqD Reg E to H Reg 1 Req a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. (Do not round Intermediate calculations. Round your answers to 1 decimal place.) b. Calculate return on equity for 2020 and 2019. (Round your answers to 1 decimal place.) 2020 2019 a Return on investment b. Return on equity %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using Financial Accounting Information The Alternative To Debits And Credits

Authors: Porter And Norton

1st Edition

1285128257, 978-1285128252

More Books

Students also viewed these Accounting questions