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 | $ | 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, 2020 and 2019 | ||||||
| (in millions) | ||||||
| 2020 | 2019 | |||||
| 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 | ||
- 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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