WIPER, INC.

Condensed Balance Sheets

December 31, 2017, 2016, 2015

(in millions)

2017

2016

2015

Current assets

$

650

$

900

$

700

Other assets

2,750

2,050

1,750

Total assets

$

3,400

$

2,950

$

2,450

Current liabilities

$

500

$

800

$

700

Long-term liabilities

1,500

1,000

800

Stockholders' equity

1,400

1,150

950

Total liabilities and stockholders' equity

$

3,400

$

2,950

$

2,450

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 $ 650 2,75 0 3,40 $ 0 2016 $ 900 2,05 0 2,95 $ 0 2015 $ 700 $ 500 1,50 0 1,40 0 3,40 $ 0 $ 800 1,00 0 1,15 0 2,95 $ 0 $ 700 1,750 $2,450 800 950 $2,450 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 Operating income Interest expense Net income Other data: Average number of common shares outstanding Total dividends paid $3,300 $ 380 80 300 $ 44 50 $ 2,90 0 300 70 230 42 30 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.) e. If Wiper's stock had a price/earnings ratio of 14 at the end of 2017, what was the market price of the stock? (Round intermediate calculations and final answer to 2 decimal place.) f. Calculate the cash dividend per share for 2017 and the dividend yield based on the market price calculated in part e. (Round intermediate calculations and final answers to 2 decimal place.) g. Calculate the dividend payout ratio for 2017. (Do not round intermediate calculations. Round your answer to 1 decimal place.) h. Assume that accounts receivable at December 31, 2017, totaled $310 million. Calculate the number of days' sales in receivables at that date. (Use 365 days a year. Do not round intermediate calculations. Round your answer to 1 decimal place.) q 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.) j. Calculate the times interest earned ratio for 2017 and 2016. (Round your answers to 1 decimal place.)