Question

In: Accounting

WIPER, INC. Condensed Balance Sheets December 31, 2017, 2016, 2015 (in millions) 2017 2016 2015 Current...

WIPER, INC.
Condensed Balance Sheets
December 31, 2017, 2016, 2015
(in millions)
2017 2016 2015
Current assets $ 683 $ 915 $ 763
Other assets 2,416 1,923 1,722
Total assets $ 3,099 $ 2,838 $ 2,485
Current liabilities $ 576 $ 806 $ 713
Long-term liabilities 1,513 1,003 851
Stockholders’ equity 1,010 1,029 921
Total liabilities and stockholders' equity $ 3,099 $ 2,838 $ 2,485
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 $ 3,053 $ 2,916
Operating income 299 313
Interest expense 87 68
Net income 200 195
Other data:
Average number of common shares outstanding 41.6 47.0
Total dividends paid $ 53.0 $ 52.6

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 13 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 $312 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.)

Solutions

Expert Solution

2017 2016 2015
ans a
Return on Investment
Net Income/Avg total assets 6.7 7.3
200/((3099+2838)/2)*100 195/((2485+2838)/2)*100
ans b
Return on equity
Net Income/Avg stockholder equity 19.6 20.0
200/((1010+1029)/2)*100 195/((1029+921)/2)*100
ans c
Working capital 107 109 50
CA-CL 683-576 915-806 763-713
Current Rtaio
CA/CL 1.2 1.1 1.1
683/576 915/806 763/713
ans d
EPS 4.81 4.15
Net Income/Avg common stock 200/41.6 195/47
ans e
PE=MPS/EPS 62.53
13*4.81
ans f
Cash dividend per share 1.27
53/41.6
Dividend yield ratio 0.02
DPS/MPS 1.27/62.53
ans g
Dividend payout ratio 0.265
Div/Net Income 53/200
ans h accounts receivable turnover 9.78525641
Sales/Avg accounts rec 3053/312
average collection period 37.30101539
365/sales*Avg accounts receivable 365/3053*312
ans i
Debt ratio 0.7 0.6
Total debts/Total assets (576+1513)/3099 (806+1003)/2838
Debt to equity ratio 2.1 1.8
(576+1513)/1010 (806+1003)/1029
ans j
Times interest earned ratio 3.4 4.6
299/87 313/68

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 2019 2018 Current...
WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 2019 2018 Current assets $ 681 $ 906 $ 753 Other assets 2,415 1,922 1,721 Total assets $ 3,096 $ 2,828 $ 2,474 Current liabilities $ 566 $ 805 $ 712 Long-term liabilities 1,521 995 842 Stockholders’ equity 1,009 1,028 920 Total liabilities and stockholders' equity $ 3,096 $ 2,828 $ 2,474 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020...
ARDUOUS COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions) 2016 2015   Assets...
ARDUOUS COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions) 2016 2015   Assets   Cash $ 116    $ 81      Accounts receivable 190    194      Investment revenue receivable 6    4      Inventory 205    200      Prepaid insurance 4    8      Long-term investment 156    125      Land 196    150      Buildings and equipment 412    400          Less: Accumulated depreciation (97) (120)   Patent 30    32    $ 1,218    $ 1,074...
METLOCK, INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets $9,800...
METLOCK, INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets $9,800 $8,760 Property, plant, and equipment (net) 1,970 1,800 Other assets 1,550 1,770 Total assets $13,320 $12,330 Liabilities and Stockholders' Equity Current Liabilities $3,230 $3,320 Long-term liabilities 1,310 1,350 Stockholders’ equity 8,780 7,660 Total liabilities and stockholders' equity $13,320 $12,330 (a) Prepare a horizontal analysis of the balance sheet data for Metlock, using 2016 as a base. (If amount and percentage are a decrease show...
Eastern Travel Services, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 Current...
Eastern Travel Services, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 Current assets: Cash $45,000 $20,000 Accounts receivable 77,000 81,000 Inventory 60,000 19,000 Prepaid insurance 13,000 17,000 Total current assets $195,000 $137,000 Land $105,000 $120,000 Equipment 84,000 53,000 Less: Accumulated depreciation (21,000) (16,000) Total assets $363,000 $294,000 Liabilities Current liabilities: Accounts payable $29,000 $38,000 Wages payable 28,000 22,000 Interest payable 17,000 16,000 Income taxes payable 13,000 10,000 Total current liabilities $87,000 $86,000 Notes payable (long-term) 93,000...
The current sections of Scoggin Inc.’s balance sheets at December 31, 2016 and 2017, are presented...
The current sections of Scoggin Inc.’s balance sheets at December 31, 2016 and 2017, are presented here. Scoggin’s net income for 2017 was $151,700. Depreciation expense was $24,300. 2017 2016 Current assets    Cash $103,000 $98,300    Accounts receivable 108,400 77,900    Inventory 157,700 171,100    Prepaid expenses 26,500 25,100       Total current assets $395,600 $372,400 Current liabilities    Accrued expenses payable $15,400 $9,100    Accounts payable 85,200 95,300       Total current liabilities $100,600 $104,400 Prepare the net cash provided by operating activities section of the company’s statement...
Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2017 and 2016....
Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2017 and 2016. Sales for the year ended December 31, 2017, totaled $640,000. HAMES, INC., Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash $ 19,000 $ 20,000 Accounts receivable 78,000 72,000 Merchandise inventory 103,000 99,000 Total current assets $ 200,000 $ 191,000 Land 50,000 40,000 Plant and equipment 125,000 110,000 Less: Accumulated depreciation (65,000 ) (60,000 ) Total assets $ 310,000 $ 281,000 Liabilities...
Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2017 and 2016....
Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2017 and 2016. Sales for the year ended December 31, 2017, totaled $670,000. HAMES, INC., Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash $ 20,000 $ 20,000 Accounts receivable 78,000 72,000 Merchandise inventory 103,000 99,000 Total current assets $ 201,000 $ 191,000 Land 50,000 40,000 Plant and equipment 125,000 110,000 Less: Accumulated depreciation (65,000 ) (60,000 ) Total assets $ 311,000 $ 281,000 Liabilities...
The current sections of Ayayai Corp.’s balance sheets at December 31, 2016 and 2017, are presented...
The current sections of Ayayai Corp.’s balance sheets at December 31, 2016 and 2017, are presented here. Ayayai Corp.’s net income for 2017 was $168,453. Depreciation expense was $29,727. 2017 2016 Current assets    Cash $115,605 $ 108,999    Accounts receivable 88,080 97,989    Inventory 184,968 189,372    Prepaid expenses 29,727 24,222 Total current assets $418,380 $420,582 Current liabilities    Accrued expenses payable $ 16,515 $ 5,505    Accounts payable 93,585 101,292 Total current liabilities $110,100 $ 106,797 Prepare the net cash provided (used) by operating...
Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2017...
Condensed financial data of Cheng Inc. follow. CHENG INC. Comparative Balance Sheets December 31 Assets 2017 2016 Cash $119,000 $47,100 Accounts receivable 93,000 32,400 Inventory 113,000 102,400 Prepaid expenses 29,100 25,700 Investments 139,500 114,700 Equipment 264,800 241,800 Accumulated depreciation-equipment (46,500 ) (51,700 ) Total $711,900 $512,400 Liabilities and Stockholders’ Equity Accounts payable $111,500 $67,600 Accrued expenses payable 16,400 17,100 Bonds payable 114,000 149,300 Common stock 219,100 174,200 Retained earnings 250,900 104,200 Total $711,900 $512,400 CHENG INC. Income Statement For the...
CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash $ 94,800 $ 24,000...
CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash $ 94,800 $ 24,000 Accounts receivable, net 41,000 51,000 Inventory 85,800 95,800 Prepaid expenses 5,400 4,200 Total current assets 227,000 175,000 Furniture 109,000 119,000 Accum. depreciation—Furniture (17,000 ) (9,000 ) Total assets $ 319,000 $ 285,000 Liabilities and Equity Accounts payable $ 15,000 $ 21,000 Wages payable 9,000 5,000 Income taxes payable 1,400 2,600 Total current liabilities 25,400 28,600 Notes payable (long-term) 29,000 69,000 Total liabilities 54,400 97,600...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT