ooo T-Mobile * 60 % 9:58 AM ezto.mheducation.com Presented here are summarized d

Question

ooo T-Mobile * 60 % 9:58 AM ezto.mheducation.com 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 Current assets Other assets Total assets Current liabilities Long-term liabilties Total liabilides and stockholders equity MIPER, INC Selected Income Statement and Other Data For the year Ended December 31, 2017 and 2016 3056 2.91 Sales Operating income Interest expense Other data Average number of common shares outstanding 13 otal dividends paid Required: a. Calculate retum 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

Explanation / Answer

Please note: The times interest earned could not be calculated as the operating income amount is not clearly readable in the image uploaded.

Also please re-confirm figures prior to submission since the amounts in the image uploaded are not clearly readable.

a. 2017 2016 Return on investment 7.0% 7.6% Net income/Average total assets 209/2995.5 204/2691.5 Average total assets (3126 + 2865)/2 (2518 + 2865)/2 2995.5 2691.5 b. 2017 2016 Return on equity 20.4% 20.9% Net income/Average stockholders' equity 209/1022.5 204/978 Average stockholders' equity (1013 + 1032)/2 (924 + 1032)/2 1022.5 978 c. 2017 2016 2015 Working capital 164 103 69 Current ratio 1.3 1.1 1.1 Working capital = CA - CL 707-543 939-836 793-724 Current ratio = CA/CL 707/543 939/836 793/724 d. 2017 2016 Earnings per share 4.99 4.31 Net income/Average number of common shares outstanding 209/41.9 204/47.3 e. Market price $69.86 Price/earnings ratio = Market price/EPS 14 = Market price/4.99 Market price = 14 x 4.99 = 69.86 f. Cash dividends per share $1.34 Dividend yield 1.92% Cash dividends per share $56.0/41.9 = 1.34 Dividend yield = Dividends paid/Market price $1.34/$69.86 = 1.92 g. Dividend payout ratio 26.79% Dividends paid / Net income $56.0 / 209 = 26.79 h. Number of days sales 37.62 days Accounts receivable/Average daily credit sales $315/($3056/365 days) = 37.62 i. 2017 2016 Debt ratio 48.9% 34.8% Debt/equity ratio 151% 97% Debt ratio Total debt/Total assets 1530/3126 997/2865 Debt/equity ratio Total debt / Total stockholders' equity 1530/1013 997/1032 j. 2017 2016 Times interest earned times times Profit before interest & tax / Interest

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