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 $ 685 $ 917 $ 773 Other assets 2,417 1,924 1,723 Total assets $ 3,102 $ 2,841 $ 2,496 Current liabilities $ 581 $ 816 $ 714 Long-term liabilities 1,510 995 860 Stockholders’ equity 1,011 1,030 922 Total liabilities and stockholders' equity $ 3,102 $ 2,841 $ 2,496 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 $ 3,054 $ 2,917 Operating income 300 314 Interest expense 88 69 Net income 203 198 Other data: Average number of common shares outstanding 41.7 47.1 Total dividends paid $ 54.0 $ 52.7 Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. Debt Ratio 2020 = ? 2019 = ? Debt/Equity Ratio 2020 = ? 2019 = ? 2. Calculate the times interest earned ratio for 2020 and 2019 Times Interest Earned 2020 = ? Times Times Interest Earned 2019 = ? Times
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 $ 685 $ 917 $ 773 Other assets 2,417 1,924 1,723 Total assets $ 3,102 $ 2,841 $ 2,496 Current liabilities $ 581 $ 816 $ 714 Long-term liabilities 1,510 995 860 Stockholders’ equity 1,011 1,030 922 Total liabilities and stockholders' equity $ 3,102 $ 2,841 $ 2,496 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 $ 3,054 $ 2,917 Operating income 300 314 Interest expense 88 69 Net income 203 198 Other data: Average number of common shares outstanding 41.7 47.1 Total dividends paid $ 54.0 $ 52.7 Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019. Debt Ratio 2020 = ? 2019 = ? Debt/Equity Ratio 2020 = ? 2019 = ? 2. Calculate the times interest earned ratio for 2020 and 2019 Times Interest Earned 2020 = ? Times Times Interest Earned 2019 = ? Times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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 | $ | 685 | $ | 917 | $ | 773 | |||
| Other assets | 2,417 | 1,924 | 1,723 | ||||||
| Total assets | $ | 3,102 | $ | 2,841 | $ | 2,496 | |||
| Current liabilities | $ | 581 | $ | 816 | $ | 714 | |||
| Long-term liabilities | 1,510 | 995 | 860 | ||||||
| 1,011 | 1,030 | 922 | |||||||
| Total liabilities and stockholders' equity | $ | 3,102 | $ | 2,841 | $ | 2,496 | |||
| 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 | $ | 3,054 | $ | 2,917 | ||
| Operating income | 300 | 314 | ||||
| Interest expense | 88 | 69 | ||||
| Net income | 203 | 198 | ||||
| Other data: | ||||||
| Average number of common shares outstanding | 41.7 | 47.1 | ||||
| Total dividends paid | $ | 54.0 | $ | 52.7 | ||
- Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.
Debt Ratio 2020 = ? 2019 = ?
Debt/Equity Ratio 2020 = ? 2019 = ?
2. Calculate the times interest earned ratio for 2020 and 2019
Times Interest Earned 2020 = ? Times
Times Interest Earned 2019 = ? Times
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education