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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 | $ | 821 | $ | 1,061 | $ | 923 | |||
Other assets | 2,432 | 1,939 | 1,738 | ||||||
Total assets | $ | 3,253 | $ | 3,000 | $ | 2,661 | |||
Current liabilities | $ | 596 | $ | 849 | $ | 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 | |||
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 | $ | 3,069 | $ | 2,932 | ||
Operating income | 315 | 329 | ||||
Interest expense | 103 | 84 | ||||
Net income | 248 | 243 | ||||
Other data: | ||||||
Average number of common shares outstanding | 43.2 | 48.6 | ||||
Total dividends paid | $ | 69.0 | $ | 54.2 | ||
Required:
- Calculate return on investment, based on net income and average total assets, for 2020 and 2019.
- Calculate return on equity for 2020 and 2019.
- Calculate working capital and the current ratio for each of the past three years.
- Calculate earnings per share for 2020 and 2019.
- If Wiper's stock had a price/earnings ratio of 13 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 5.
- Calculate the dividend payout ratio for 2020.
- Assume that accounts receivable at December 31, 2020, totaled $309 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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