Complete this question by entering your answers in the tabs below. Reg A and B Req C Req D Req E to H. Req I Req J Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. (Round "Debt ratio" to 1 decimal place and "Debt/egquity ratio" to the nearest whole percent.) 2020 2019 Debt ratio % % Debt/equity ratio %

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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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)
2019
$900
2,050
$2,950
2018
700
2020
Current assets
other assets
$ 650
2,750
$3,400
1,750
Total assets
$2,450
Current liabilities
Long-term 1iabilities
Stockholders' equity
$ 800
1,000
1,150
$2,950
$ 700
800
500
1,500
1,400
$3,400
950
Total liabilities and stockholders equity
$2,450
WIPER INC.
Selected Income Statement and Othe
For the year Ended December 31, 2020 and 2019
(in millions)
Data
2020
2019
Income statement data:
Sales
Operating income
Interest expense
Net income
other data:
Average number of common shares outstanding
Total dividends paid
$3,300
380
80
300
$2,900
300
70
230
44
42
50
30
Requlred:
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 ratio for 2020.
h. Assume that accounts recelvable at December 31, 2020, totaled $310 million. Calculate the number of days' sales In recelvables at
that 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.
Transcribed Image Text: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) 2019 $900 2,050 $2,950 2018 700 2020 Current assets other assets $ 650 2,750 $3,400 1,750 Total assets $2,450 Current liabilities Long-term 1iabilities Stockholders' equity $ 800 1,000 1,150 $2,950 $ 700 800 500 1,500 1,400 $3,400 950 Total liabilities and stockholders equity $2,450 WIPER INC. Selected Income Statement and Othe For the year Ended December 31, 2020 and 2019 (in millions) Data 2020 2019 Income statement data: Sales Operating income Interest expense Net income other data: Average number of common shares outstanding Total dividends paid $3,300 380 80 300 $2,900 300 70 230 44 42 50 30 Requlred: 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 ratio for 2020. h. Assume that accounts recelvable at December 31, 2020, totaled $310 million. Calculate the number of days' sales In recelvables at that 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.
Req A and B
Req C
Req D
Req E to H
Req I
Req J
Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. (Round "Debt ratio" to 1 decimal place
and "Debt/equity ratio" to the nearest whole percent.)
2020
2019
Debt ratio
Debt/equity ratio
< Req E to H
Req J >
Transcribed Image Text:Complete this question by entering your anSwers in the tabs below. Req A and B Req C Req D Req E to H Req I Req J Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. (Round "Debt ratio" to 1 decimal place and "Debt/equity ratio" to the nearest whole percent.) 2020 2019 Debt ratio Debt/equity ratio < Req E to H Req J >
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