Presented here are summarized data from the balance sheets and Income statements of Wiper Inc.:WIPER INC.Condensed Balance SheetsDecember 31, 2020, 2019, 2018(in millions)2019$ 9002,050$2,9502018$7002020Current assetsother assets$ 6502,750$3,4001,750$2,450Total assetsCurrent liabilitiesLong-term 1iabilitiesStockholders' equity$ 7008005008001,5001,400$3,4001,0001,150$2,950950Total liabilities and stockholders equity$2,450WIPER INC.Selected Income Statement and other DataFor the year Ended December 31, 2020 and 2019(in millions)20202019Income statement data:Sales$3,30038080300$2,900300Operating incomeInterest expenseNet incomeother data:Average number of common shares outstandingTotal dividends paid7023044425030Requlred:a. Calculate return on Investment, based on net Income and average total assets, for 2020 and 2019.b. Calculate return on equlty for 2020 and 2019.c. Calculate working capital and the current ratlo for each of the past three years.d. Calculate earnings per share for 2020 and 2019.e. If Wiper's stock had a price/earnings ratlo of 14 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 part e.g. Calculate the dividend payout ratlo for 2020.h. Assume that accounts recelvable at December 31, 2020, totaled $310 million. Calculate the number of days' sales In recelvables atthat date.L. Calculate Wiper's debt ratlo and debt/equlty ratlo at December 31, 2020 and 2019.J. Calculate the times Interest earned ratlo for 2020 and 2019. Complete this question by entering your answers in the tabs below.Reg A and BReq CReq DReq E to HReg IReq JCalculate the times interest earned ratio for 2020 and 2019. (Round your answers to 1 decimal place.)20202019Times interest earnedtimestimes

Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

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 $ 650 2019 2018 Current assets other assets $ 900 2,050 24 700 2,750 $3,400 1,750 $2,450 Total assets $2,950 Current liabilities $ 500 1,500 1,400 800 $ 700 Long-term liabilities stockholders' equity 1,000 1,150 800 950 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, 2020 and 2019 (in millions) 2020 2019 Income statement data: Sales Operating income Interest expense Net income $3,300 $2,900 300 380 80 70 300 230 other data: Average number of common shares outstanding Total dividends paid 44 42 24 50 $4 30

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 $ 650 2019 2018 Current assets other assets $ 900 2,050 24 700 2,750 $3,400 1,750 $2,450 Total assets $2,950 Current liabilities $ 500 1,500 1,400 800 $ 700 Long-term liabilities stockholders' equity 1,000 1,150 800 950 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, 2020 and 2019 (in millions) 2020 2019 Income statement data: Sales Operating income Interest expense Net income $3,300 $2,900 300 380 80 70 300 230 other data: Average number of common shares outstanding Total dividends paid 44 42 24 50 $4 30

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.4C

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