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 $ 685 $ 917 $ 773 Other assets 2,417 1,924 1,723 Total assets $ 3,102 $ 2,841 $ 2,496 Current liabilities $ 581 $ 816 $ 714 Long-term liabilities 1,510 995 860 Stockholders’ equity 1,011 1,030 922 Total liabilities and stockholders' equity $ 3,102 $ 2,841 $ 2,496 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 $ 3,054 $ 2,917 Operating income 300 314 Interest expense 88 69 Net income 203 198 Other data: Average number of common shares outstanding 41.7 47.1 Total dividends paid $ 54.0 $ 52.7 Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. Debt Ratio 2020 = ? 2019 = ? Debt/Equity Ratio 2020 = ? 2019 = ? 2. Calculate the times interest earned ratio for 2020 and 2019 Times Interest Earned 2020 = ? Times Times Interest Earned 2019 = ? Times
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 $ 685 $ 917 $ 773 Other assets 2,417 1,924 1,723 Total assets $ 3,102 $ 2,841 $ 2,496 Current liabilities $ 581 $ 816 $ 714 Long-term liabilities 1,510 995 860 Stockholders’ equity 1,011 1,030 922 Total liabilities and stockholders' equity $ 3,102 $ 2,841 $ 2,496 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 $ 3,054 $ 2,917 Operating income 300 314 Interest expense 88 69 Net income 203 198 Other data: Average number of common shares outstanding 41.7 47.1 Total dividends paid $ 54.0 $ 52.7 Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. Debt Ratio 2020 = ? 2019 = ? Debt/Equity Ratio 2020 = ? 2019 = ? 2. Calculate the times interest earned ratio for 2020 and 2019 Times Interest Earned 2020 = ? Times Times Interest Earned 2019 = ? Times
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 103.2C
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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 | $ | 685 | $ | 917 | $ | 773 | |||
Other assets | 2,417 | 1,924 | 1,723 | ||||||
Total assets | $ | 3,102 | $ | 2,841 | $ | 2,496 | |||
Current liabilities | $ | 581 | $ | 816 | $ | 714 | |||
Long-term liabilities | 1,510 | 995 | 860 | ||||||
1,011 | 1,030 | 922 | |||||||
Total liabilities and stockholders' equity | $ | 3,102 | $ | 2,841 | $ | 2,496 | |||
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 | $ | 3,054 | $ | 2,917 | ||
Operating income | 300 | 314 | ||||
Interest expense | 88 | 69 | ||||
Net income | 203 | 198 | ||||
Other data: | ||||||
Average number of common shares outstanding | 41.7 | 47.1 | ||||
Total dividends paid | $ | 54.0 | $ | 52.7 | ||
- Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.
Debt Ratio 2020 = ? 2019 = ?
Debt/Equity Ratio 2020 = ? 2019 = ?
2. Calculate the times interest earned ratio for 2020 and 2019
Times Interest Earned 2020 = ? Times
Times Interest Earned 2019 = ? Times
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