Question

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	$	707		$	939		$	793
Other assets		2,419			1,926			1,725
Total assets	$	3,126		$	2,865		$	2,518
Current liabilities	$	583		$	836		$	724
Long-term liabilities		1,530			997			870
Stockholders’ equity		1,013			1,032			924
Total liabilities and stockholders' equity	$	3,126		$	2,865		$	2,518

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	$	3,056		$	2,919
Operating income		302			316
Interest expense		90			71
Net income		209			204
Other data:
Average number of common shares outstanding		41.9			47.3
Total dividends paid	$	56.0		$	52.9

e. If Wiper stock had a price/earnings ratio of 14 at the end of 2017 what was the market price of the stock

f.Calculate the cash dividend per share for 2017 and the dividend yield base on the market price calculated in part E

g.Calculate the dividend payout ratio for 2017

h.Assume acct receviable at Dec 31, 2017 totaled 315 million. Calculate the number of days in receivables at that date.

I.Calculate Wipers debt ratio at Dec 31,2017 and 2016

J. Calculate the times interest earned ratio of 2017 and 2016

Answer 1

(E) Market Price Per Stock = $69.86

(F) 1. Cash dividend per share = $ 1.34

2. Dividend yield ratio = 1.92%

(G) Dividend Payout Ratio = 26.85%

(H) No. Of days in Recievables = 37.62 days

(I) Debt Ratio : 2017 = 67.59%

2016 = 63.98%

(J) Times interest earned ratio : 2017= 3.32 times

2016 = 3.87 times