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 Current assets $ 685 Other assets 2,417 Total assets $3,102 Current liabilities $ 581 Long-term liabilities 1,510 Stockholders' equity 1,011 Total liabilities and stockholders' equity $ 3,102 2019 $ 917 1,924 $2,841 $ 816 995 1,030 $ 2,841 2018 $ 773 1,723 $2,496 $ 714 860 922 $ 2,496 2019 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) 2020 Income statement data: Sales $3,054 Operating income 300 Interest expense Net income 203 Other data: Average number of common shares outstanding 41.7 Total dividends paid $ 54.0 $2,917 314 69 198 88 47.1 $ 52.7

Answer 1

1. Debt Ratio = Total Liability / Total Assets
2. Debt / Equity Ratio = Total Liability / Total Equity

Therefore, Ratio will be as follow:

			$
Sr.	Particular	2020	2019
A	Total Assets	3,102	2,841
B	Total Liability	2,091	1,811
C	Total Equity	1,011	1,030
Debt Ratio (B / A)		0.7	0.6
Debt / Equity (B / C)		2.1	1.8