Question

please complete only what is missing as soon as possible and please use the same format

Presented here are summarized data from the balance sheets and income statements of Wiper Ir WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) Current assets other assets Total assets Current liabi Long-term lia Stockholders' Total liabili 2020 $ 683 2,416 $3,099 $ 576 2019 $ 915 1,923 $2,838 $ 806 2018 S 763 1,722 $2,485 $ 713 851 921 $2,485 513 1,003 1,010 $3,099 es and stockholders' equity 1,029 $2,838 WIPER INC. ted Income Statement and Other Data the year Ended December 31, 2020 and 2019 lions 2020 2019 $3,053 299 $2,916 313 Income statement data Sales Operating income Interest expense Net income Other data: Average number of common share Total dividends caid 87 200 195 41. 6 $ 53. 47. 5 52.6

Answer 1

Solution:

a.) ROI = Net income / Average total assets

		2020 (in $ and million)	2019 (in $ and million)
1.	Net income	200	195
2.	Beginning total assets	2,838	2,485
3.	Ending total assets	3,099	2,838
4.	Average total assets:
	[(2) +(3)]/2	$2,968.5	$2,661.5
5.	Return on investment [(1) +(4)]	6.7%	7.3%

b.) Return on equity = Net income / Average stockholder' equity

		2020(in $ and million)	2019(in $ and million)
1.	Net income	200	195
2.	Beginning stockholder' equity	1,029	921
3.	Ending stockholder' equity	1,010	1,029
4.	Average stockholder' equity
	[(2)+(3)]/2	1524.5	975
5.	Return on equity [(1) /(4)]	13.1%	20%

c.) Working capital =current assets - current liabilities

Current ratio =current assets /currentliabilities

		2020( in$ and million)	2019(in dollar and million)	2018 ( in dollar and million)
1.	Current assets	683	915	763
2.	Current liabilities	576	806	713
3.	Working capital (1-2)	107	109	50
4.	Current ratio (1/2)	1.2	1.1	1.0

d.) Earnings per share = Net income /Average number of common shares outstanding

		2020 (in $ and million)	2019 (in $ and million)
1.	Net income	200	195
2.	Average number of common
	Shares outstanding	41.6	47.0
3.	Earnings per share (1) /(2)	$4.80	$4.15

e.) Market price of the stock = price earning ratio × earning per share

=13 ×$4.80 = $62.4

f.)

F.	Dividened per share =Total dividends paid / average number of common shares outstanding =53.0/41.6 =$1.27 per share
	Dividend yield = Dividend per share / market price of the stock =(1.27 /62.4)×100 =2.03%

g.) Dividend payout ratio = total dividend paid / net income

=53.0/200 =0.27

h.) Number of days sales in receivables = Average accounts receivable / Average daily sales on account

Average daily sales on account = Sales / 365

=$3,053/365 = 8.364

Number of days sales in receivables

=312 /8.364

=37.30

37 days