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 | $ | 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 | ||||||
| Selected Income Statement and Other Data | ||||||
| For the year Ended December 31, 2017 and 2016 | ||||||
| (in millions) | ||||||
| 2017 | 2016 | |||||
| Income statement data: | ||||||
| Sales | $ | 3,300 | $ | 2,900 | ||
| Operating income | 380 | 300 | ||||
| Interest expense | 80 | 70 | ||||
| Net income | 300 | 230 | ||||
| Other data: | ||||||
| Average number of common shares outstanding | 44 | 42 | ||||
| Total dividends paid | $ | 50 | $ | 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.)
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