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 Required: Calculate return on investment, based on net income and average total assets, for 2020 and 2019. Calculate return on equity for 2020 and 2019. 2. Calculate working capital and the current ratio for each of the past three years. 2018, 2019 and 2020 3. Calculate earnings per share for 2020 and 2019.
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 Required: Calculate return on investment, based on net income and average total assets, for 2020 and 2019. Calculate return on equity for 2020 and 2019. 2. Calculate working capital and the current ratio for each of the past three years. 2018, 2019 and 2020 3. Calculate earnings per share for 2020 and 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 | ||
Required:
- Calculate
return on investment , based on net income and average total assets, for 2020 and 2019. Calculate return on equity for 2020 and 2019.
2. Calculate
3. Calculate earnings per share for 2020 and 2019.
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