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	$	798		$	1,031		$	893
Other assets		2,429			1,936			1,735
Total assets	$	3,227		$	2,967		$	2,628
Current liabilities	$	593		$	846		$	748
Long-term liabilities		1,611			1,079			946
Stockholders’ equity		1,023			1,042			934
Total liabilities and stockholders' equity	$	3,227		$	2,967		$	2,628

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	$	3,066		$	2,929
Operating income		312			326
Interest expense		100			81
Net income		239			234
Other data:
Average number of common shares outstanding		42.9			48.3
Total dividends paid	$	66.0		$	53.9

Required:

1. Calculate return on investment, based on net income and average total assets, for 2020 and 2019.
2. Calculate return on equity for 2020 and 2019.
3. Calculate working capital and the current ratio for each of the past three years.
4. Calculate earnings per share for 2020 and 2019.

Answer 1

If you have any doubts please comment on the answer.