| WIPER, INC. |
| Condensed Balance Sheets |
| December 31, 2017, 2016, 2015 |
| (in millions) |
| | 2017 | 2016 | 2015 |
| Current assets | $ | 734 | | $ | 959 | | $ | 813 | |
| Other assets | | 2,421 | | | 1,928 | | | 1,727 | |
| Total assets | $ | 3,155 | | $ | 2,887 | | $ | 2,540 | |
| Current liabilities | $ | 585 | | $ | 838 | | $ | 731 | |
| Long-term liabilities | | 1,555 | | | 1,015 | | | 883 | |
| Stockholders equity | | 1,015 | | | 1,034 | | | 926 | |
| Total liabilities and stockholders' equity | $ | 3,155 | | $ | 2,887 | | $ | 2,540 | |
| |
| 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 | $ | 3,058 | | $ | 2,921 | |
| Operating income | | 304 | | | 318 | |
| Interest expense | | 92 | | | 73 | |
| Net income | | 215 | | | 210 | |
| Other data: | | | | | | |
| Average number of common shares outstanding | | 42.1 | | | 47.5 | |
| Total dividends paid | $ | 58.0 | | $ | 53.1 | |
| |
| | | | 2017 | 2016 | | Return on investment | 7.1 | % | 7.7 | % | |
| |
| | | | 2017 | 2016 | | Return on equity | 21.0 | % | 21.4 | % | |
| |
| | | | 2017 | 2016 | 2015 | | Working capital | $149 | $121 | $82 | | Current ratio | 1.3 | 1.1 | 1.1 | |
| |
| | | | 2017 | 2016 | | Earnings per share | $5.11 | $4.42 | |
| |
| | | | | Cash dividends per share | $1.38 | | | Dividend yield | 2.08 | % | |
Dividend payout ratio : 27%
A. Assume that accounts receivable at December 31, 2017, totaled $317 million. Calculate the number of days' sales in receivables at that date. (Use 365 days a year. Do not round intermediate calculations.)
B. 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.)
C. Calculate the times interest earned ratio for 2017 and 2016. (Round your answers to 1 decimal place.)
