Reference no: EM133032001
Problem - 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
|
$771
|
$991
|
$853
|
|
Other assets
|
2,425
|
1,932
|
1,731
|
|
Total assets
|
$3,196
|
$2,923
|
$2,584
|
|
Current liabilities
|
$589
|
$842
|
$735
|
|
Long-term liabilities
|
1,588
|
1,043
|
919
|
|
Stockholders' equity
|
1,019
|
1,038
|
930
|
|
Total liabilities and stockholders' equity
|
$3,196
|
$2,923
|
$2,584
|
|
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
|
$3,062
|
$2,925
|
|
Operating income
|
308
|
322
|
|
Interest expense
|
96
|
77
|
|
Net income
|
227
|
222
|
|
Other data:
|
|
|
|
Average number of common shares outstanding
|
42.5
|
47.9
|
|
Total dividends paid
|
$62.0
|
$53.5
|
Required -
a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019.
b. Calculate return on equity for 2020 and 2019.
c. Calculate working capital and the current ratio 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 ratio of 13 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 yield based on the market price calculated in part e.
g. Calculate the dividend payout ratio for 2020.
h. Assume that accounts receivable at December 31, 2020, totaled $321 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, 2020 and 2019.
j. Calculate the times interest earned ratio for 2020 and 2019.
|
How much revenue Rothbart recognize in for this contract
: Rothbart Manufacturing agrees to manufacture bumper cars for 12 Banners Amusement Parks. How much revenue Rothbart recognize in for this contract
|
|
Internet of things technologies
: What are some Internet of Things technologies that you use or are familiar with for navigating in the city (e.g., transit, cycling, etc.), using city services,
|
|
Information about instant messaging applications
: Find out more information about instant messaging applications using the Internet, such as the requirements for setting it up, its benefits, any potential risks
|
|
Business practices on global business
: What are the implications of unethical work business practices on global business?
|
|
Calculate the number of days sales in receivables
: Assume that accounts receivable at December 31, 2020, totaled $321 million. Calculate the number of days' sales in receivables at that date
|
|
Promote social and environmental goals
: How do corporations implement their corporate social responsibility practices to promote their social and environmental goals?
|
|
Why is social difference important
: Why is social difference important and how it is manifest spatially
|
|
Basic planning models vs. systematic planning model
: 1. Differentiate the following planning models. A. Basic Planning Models Vs. Systematic Planning Model
|
|
Instant messaging applications using the internet
: Find out more information about instant messaging applications using the Internet, such as the requirements for setting it up, its benefits, any potential risks
|