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 | $ | 764 | $ | 981 | $ | 843 | |||
| Other assets | 2,424 | 1,931 | 1,730 | ||||||
| Total assets | $ | 3,188 | $ | 2,912 | $ | 2,573 | |||
| Current liabilities | $ | 588 | $ | 841 | $ | 734 | |||
| Long-term liabilities | 1,582 | 1,034 | 910 | ||||||
| Stockholders equity | 1,018 | 1,037 | 929 | ||||||
| Total liabilities and stockholders' equity | $ | 3,188 | $ | 2,912 | $ | 2,573 | |||
| 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 | $ | 3,061 | $ | 2,924 | ||
| Operating income | 307 | 321 | ||||
| Interest expense | 95 | 76 | ||||
| Net income | 224 | 219 | ||||
| Other data: | ||||||
| Average number of common shares outstanding | 42.4 | 47.8 | ||||
| Total dividends paid | $ | 61.0 | $ | 53.4 | ||
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b. Calculate return on equity for 2017 and 2016. (Round your answers to 1 decimal place.)
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.) | ||||||
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