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 $ 759 $ 971 $ 833 Other assets 2,423 1,930 1,729 Total assets $ 3,182 $ 2,901 $ 2,562 Current liabilities $ 587 $ 840 $ 733 Long-term liabilities 1,578 1,025 901 Stockholdersâ equity 1,017 1,036 928 Total liabilities and stockholders' equity $ 3,182 $ 2,901 $ 2,562
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 $ 3,060 $ 2,923 Operating income 306 320 Interest expense 94 75 Net income 221 216 Other data: Average number of common shares outstanding 42.3 47.7 Total dividends paid $ 60.0 $ 53.3
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.)
b. Calculate return on equity for 2017 and 2016. (Round your answers to 1 decimal place.)
c. Calculate working capital and the current ratio for each of the past three years. (Enter your answers in millions (i.e., 5,000,000 should be entered as 5). Round "Current ratio" to 1 decimal place.)
d. Calculate earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.)
e. If Wiper's stock had a price/earnings ratio of 15 at the end of 2017, what was the market price of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
f. Calculate the cash dividend per share for 2017 and the dividend yield based on the market price calculated in part e. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
g. Calculate the dividend payout ratio for 2017. (Do not round intermediate calculations.)
h. Assume that accounts receivable at December 31, 2017, totaled $319 million. Calculate the number of days' sales in receivables at that date. (Use 365 days a year. Do not round intermediate calculations.)
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.)
j. Calculate the times interest earned ratio for 2017 and 2016. (Round your answers to 1 decimal place.)
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 | $ | 759 | $ | 971 | $ | 833 | |||
| Other assets | 2,423 | 1,930 | 1,729 | ||||||
| Total assets | $ | 3,182 | $ | 2,901 | $ | 2,562 | |||
| Current liabilities | $ | 587 | $ | 840 | $ | 733 | |||
| Long-term liabilities | 1,578 | 1,025 | 901 | ||||||
| Stockholdersâ equity | 1,017 | 1,036 | 928 | ||||||
| Total liabilities and stockholders' equity | $ | 3,182 | $ | 2,901 | $ | 2,562 | |||
| 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 | $ | 3,060 | $ | 2,923 | ||
| Operating income | 306 | 320 | ||||
| Interest expense | 94 | 75 | ||||
| Net income | 221 | 216 | ||||
| Other data: | ||||||
| Average number of common shares outstanding | 42.3 | 47.7 | ||||
| Total dividends paid | $ | 60.0 | $ | 53.3 | ||
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.)
b. Calculate return on equity for 2017 and 2016. (Round your answers to 1 decimal place.)
c. Calculate working capital and the current ratio for each of the past three years. (Enter your answers in millions (i.e., 5,000,000 should be entered as 5). Round "Current ratio" to 1 decimal place.)
d. Calculate earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.)
e. If Wiper's stock had a price/earnings ratio of 15 at the end of 2017, what was the market price of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
f. Calculate the cash dividend per share for 2017 and the dividend yield based on the market price calculated in part e. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
g. Calculate the dividend payout ratio for 2017. (Do not round intermediate calculations.)
h. Assume that accounts receivable at December 31, 2017, totaled $319 million. Calculate the number of days' sales in receivables at that date. (Use 365 days a year. Do not round intermediate calculations.)
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.)
j. Calculate the times interest earned ratio for 2017 and 2016. (Round your answers to 1 decimal place.)
Related questions
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 | $ | 781 | $ | 1,001 | $ | 863 | |||
| Other assets | 2,426 | 1,933 | 1,732 | ||||||
| Total assets | $ | 3,207 | $ | 2,934 | $ | 2,595 | |||
| Current liabilities | $ | 590 | $ | 843 | $ | 736 | |||
| Long-term liabilities | 1,597 | 1,052 | 928 | ||||||
| Stockholdersâ equity | 1,020 | 1,039 | 931 | ||||||
| Total liabilities and stockholders' equity | $ | 3,207 | $ | 2,934 | $ | 2,595 | |||
| | |||||||||
| 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 | $ | 3,063 | $ | 2,926 | ||
| Operating income | 309 | 323 | ||||
| Interest expense | 97 | 78 | ||||
| Net income | 230 | 225 | ||||
| Other data: | ||||||
| Average number of common shares outstanding | 42.6 | 48.0 | ||||
| Total dividends paid | $ | 63.0 | $ | 53.6 | ||
\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.)
b. Calculate return on equity for 2017 and 2016. (Round your answers to 1 decimal place.)
c. Calculate working capital and the current ratio for each of the past three years. (Enter your answers in millions (i.e., 5,000,000 should be entered as 5). Round "Current ratio" to 1 decimal place.)
d. Calculate earnings per share for 2017 and 2016. (Round your answers to 2 decimal places.)
e. If Wiper's stock had a price/earnings ratio of 10 at the end of 2017, what was the market price of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
f. Calculate the cash dividend per share for 2017 and the dividend yield based on the market price calculated in part e. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
g. Calculate the dividend payout ratio for 2017. (Do not round intermediate calculations.)
h. Assume that accounts receivable at December 31, 2017, totaled $322 million. Calculate the number of days' sales in receivables at that date. (Use 365 days a year. Do not round intermediate calculations.)
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.)
j. Calculate the times interest earned ratio for 2017 and 2016. (Round your answers to 1 decimal place.)
