Presented here are summarized data from the balance sheets and income statements

Question

Presented here are summarized data from the balance sheets and income statements of Wiper, Inc.:

Presented Here Are Chapter 11 (10 Points) ACG3173-18 Presented here are s ummarized data from the balance sheets and income statements of Wiper, Inc.: WIPER, INC. Condensed Balance Sheets December 31, 2017, 2016, 2015 2016 2015 759 $ 971 S 833 2,4231930 1,729 $3,182 $2,901 $2,582 733 901 2017 Current assets Other assets Total assets Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity 1,578 1,025 1,0171036 928 $3,182 $2,901 $2,582 WIPER Selected Income Statement and Other Data For the yoar Ended December 31, 2017 and 2016 (in milions) 2017 2016 Income statement data: $3,060 $2,923 320 75 221?216 306 94 Operating income nterest expense Net income Other data: Average number of common shares outstanding Total dividends paid 42.3 47.7 s 60.0 53.3 decimal place.) assets, fo Required: a. Calculae returmon investment, based on net income and age total assets, for 2017 and 2016. (Do not round intermediate calculations. Round your answers to 1 t, based on net income and aver Returm on nvestment decimal place.) b. Calculate return on equity for 2017 and 2016. (Round your answers to 1 equity each of the past three years. (Enter your answers in millions (.e, 5,000,000 should be entered as 5). Round "Current ratio" to 1 decimal place.) Working capital Current ratio d. Calculate earnings per share for 2017 and 2016, (Round your answers to 2 decimal places.) Earnings per share

Explanation / Answer

Answer a

Average Total Assets for 2017 = ($3,982 + $2,901) / 2 = $3,441.5

Average Total Assets for 2016 = ( $2,901 + $2,562) / 2 = $2,731.5

Return on Investment = (Net Income / Average Total Assets) * 100

Answer b

Shareholders Average Equity for 2017 = ($1,017 + $1,036) / 2 = $1,026.5

Shareholders Average Equity for 2016 = ( $1,036 + $928) / 2 = $982

Return on Equity= (Net Income / Shareholders Average Equity) * 100

Answer c

Working Capital = Current Assets - Current Liabilities

Current Ratio = Current Assets / Current Liabilities

Answer d

Earning Per Share (EPS )= Net Income / Avg . Number of Common Shares Outstanding

Answer e

Price Earning Ratio = Market Price / Earning Per Share

or , Market Price = Price Earning Ratio *  Earning Per Share

Answer f

Cash Dividend Per Share for 2017 = Total Dividend Paid / Avg . Number of Common Shares Outstanding

= $60 .0 / 42.30 = $1.42 per share

Dividend Yeild for 2017 = Cash Dividend Per Share / Market Price = ($1.42 / $78.30 ) * 100 = 1.81 %

Answer g

Dividend Paayout Ratio for 2017 = Cash Dividend Per Share / EPS = ($1.42 / $5.22 ) * 100 = 27.20 % or 27 %

Answer h

Number of Days sales in 2017 = (Accounts Receivable / Credit Sales) * 365 days

= ($319 / $3,060 ) * 365 days = 38 days

Answer i

Debt Ratio = (Current Liabilities + Long term liabiities) / Total Liabilities & Shareholders 's Equity

Debt equity ratio = (Current Liabilities + Long term liabiities) / Total Shareholders 's Equity

Answer J

Total interest earned = Operating Income / Interest Expense

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