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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
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 | ||
- If Wiper's stock had a price/earnings ratio of 14 at the end of 2020, what was the market price of the stock?
- Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e.
- Calculate the dividend payout ratio for 2020.
- Assume that accounts receivable at December 31, 2020, totaled $310 million. Calculate the number of days' sales in receivables at that date.
- Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.
- Calculate the times interest earned ratio for 2020 and 2019.
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