Problem $11\mathrm{.}17$

Ratio analysis$-$comprehensive problem Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:

Required:

a$.$ Calculate return on investment, based on net income and average total assets, for $2023$ and $2022.$ Show both margin and turnover in your calculation.

b$.$ Calculate return on equity for $2023$ and $2022.$

c$.$ Calculate working capital and the current ratio for each of the past three years.

d$.$ Calculate earnings per share for $2023$ and $2022.$

e$.$ If Wiper's stock had a price$/$earnings ratio of $14$ at the end of $2023,$ what was the market price of the stock?

f$.$ Calculate the cash dividend per share for $2023$ and the dividend yield based on the market price calculated in part e$.$

g$.$ Calculate the dividend payout ratio for $2023.$

h$.$ Assume that accounts receivable at December $31,2023,$ totaled $\backslash (\backslash$$ $310\backslash )$ million. Calculate the number of days' sales in receivables at that date.

i$.$ Calculate Wiper's debt ratio and debt$/$equity ratio at December $31,2023$ and $2022.$

j$.$ Calculate the times interest earned ratio for $2023$ and $2022.$

k$.$ Review the results of these calculations, evaluate the profitability and liquidity of this company, and state your opinion about its suitability as an investment for a young, single professional with funds to invest in common stock.