Question

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.
5. If Wiper's stock had a price/earnings ratio of 12 at the end of 2020, what was the market price of the stock?
6. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e.
7. Calculate the dividend payout ratio for 2020.
8. Assume that accounts receivable at December 31, 2020, totaled $314 million. Calculate the number of days' sales in receivables at that date.
9. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.
10. Calculate the times interest earned ratio for 2020 and 2019.

2020			2019			2018
Current assets	$	695		$	927		$	783
Other assets		2,418			1,925			1,724
Total assets	$	3,113		$	2,852		$	2,507
Current liabilities	$	582		$	826		$	719
Long-term liabilities		1,519			995			865
Stockholders’ equity		1,012			1,031			923
Total liabilities and stockholders' equity	$	3,113		$	2,852		$	2,507

2020			2019
Income statement data:
Sales	$	3,055		$	2,918
Operating income		301			315
Interest expense		89			70
Net income		206			201
Other data:
Average number of common shares outstanding		41.8			47.2
Total dividends paid	$	55.0		$	52.8

Answer 1