IPER, INC.
Condensed Balance Sheets
December 31, 2014, 2013, 2012
(in millions)
2014 2013 2012
Current assets $ 679 $ 898 $ 743
Other assets 2,414 1,921 1,720






$ 3,093 $ 2,819 $ 2,463












Current liabilities $ 563 $ 804 $ 711
Long term liabilities 1,522 988 833
Owners’ equity 1,008 1,027 919






$ 3,093 $ 2,819 $ 2,463













WIPER, INC
Selected Income Statement and Other Data
For the year Ended December 31, 2014 and 2013
(in millions)
2014 2013
Income statement data:
Sales $ 3,051 $ 2,914
Operating income (EBIT) 297 311
Interest expense 85 66
Net income 194 189
Other data:
Average number of common shares outstanding 41.4 46.8
Total dividends paid $ 51.0 $ 52.4

a. Calculate return on investment, based on net income and average total assets, for 2014 and 2013.

b. Calculate return on equity for 2014 and 2013

c. Calculate working capital and the current ratio for each of the past three years. d. Calculate earnings per share for 2014 and 2013. e. If Wiper’s stock had a price/earnings ratio of 13 at the end of 2014, what was the market price of the stock? f. Calculate the cash dividend per share for 2014 and the dividend yield based on the market price calculated in part e . g. Calculate the dividend payout ratio for 2014.

h. Assume that accounts receivable at December 31, 2014, totaled $309 million. Calculate the number of days’ sales in receivables at that date.

i. Calculate Wiper’s debt ratio and debt/equity ratio at December 31, 2014 and 2013.

j. Calculate the times interest earned ratio for 2014 and 2013.