Question
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
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 | $ | 707 | $ | 939 | $ | 793 | |||
Other assets | 2,419 | 1,926 | 1,725 | ||||||
Total assets | $ | 3,126 | $ | 2,865 | $ | 2,518 | |||
Current liabilities | $ | 583 | $ | 836 | $ | 724 | |||
Long-term liabilities | 1,530 | 997 | 870 | ||||||
Stockholders equity | 1,013 | 1,032 | 924 | ||||||
Total liabilities and stockholders' equity | $ | 3,126 | $ | 2,865 | $ | 2,518 | |||
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 | $ | 3,056 | $ | 2,919 | ||
Operating income | 302 | 316 | ||||
Interest expense | 90 | 71 | ||||
Net income | 209 | 204 | ||||
Other data: | ||||||
Average number of common shares outstanding | 41.9 | 47.3 | ||||
Total dividends paid | $ | 56.0 | $ | 52.9 | ||
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.)
b. Calculate return on equity for 2017 and 2016. (Round your answers to 1 decimal place.)
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.)
d. Calculate earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.)
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.)
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