Question: 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 $ 681 $906 $ 753 Other assets 2,415 1.922 1,721 Total assets $3,896 $2,828 $2,474 Current liabilities $ 566 885 $ 712 Long-term liabilities 1,521 995 842 Stockholders' equity 1.899 1.028 920 Total liabilities and stockholders' equity $3,896 $2,828 $2,474 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 2819 Income statement data: Sales Operating income Interest expense Net income Other data: Average number of common shares outstanding Total dividends paid $3,052 298 86 197 $2,915 312 67 192 41.5 $ 52.e 46.9 $ 52.5 Required: a. Calculate return on investment, based on net Income and average total assets, for 2020 and 2019. b. Calculate return on equity for 2020 and 2019. Calculate working capital and the current ratio for each of the past three years. d. Calculate earnings per share for 2020 and 2019. e. If Wiper's stock had a price learnings ratio of 12 at the end of 2020, what was the market price of the stock? f. Calculate the cash dividend per share for 2020 and the dividend yleld based on the market price calculated in parte. g. Calculate the dividend payout ratio for 2020. h. Assume that accounts recelvable at December 31, 2020. totaled $311 million. Calculate the number of days' sales in recelvables at that date. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. J. Calculate the times interest earned ratio for 2020 and 2019. Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B Reqc Reg D Red Eto H Req! Rey a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. (Do not round intermediate calculations. Round your answers to 1 decimal place.) b. Calculate return on equity for 2020 and 2019. (Round your answers to 1 decimal place.) 2019 72% a. b. Return on investment Return on equity 2020 6.7 % 19.3% 19.7%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
