The Davidson Corporations balance sheet and income statement are provided here. a. Construct the statement of stockholders
Question:
b. How much money has been reinvested in the firm over the years?
c. At the present time, how large a check could be written without it bouncing?
d. How much money must be paid to current creditors within the next year?
Transcribed Image Text:
Davidson Corporation: Balance Sheet as of December 31, 2018 (Millions of Dollars) Assets Liabilities and Equity $ 15 $ 120 Cash and equivalents Accounts payable Accounts receivable Accruals 515 280 880 Notes payable Inventories 220 $ 620 Total current liabilities Total current assets $1,410 Net plant and equipment Long-term bonds 2,590 1,520 $2,140 Total liabilities Common stock (100 million shares) 260 Retained earnings 1,600 Common equity $1,860 Total assets Total liabilities and equity $4,000 $4,000 Davidson Corporation: Income Statement for Year Ending December 31, 2018 (Millions of Dollars) Sales $ 6,250 Operating costs excluding depreciation and amortization 5,230 EBITDA $ 1,020 Depreciation and amortization 220 EBIT $ 800 Interest 180 EBT $ 620 Taxes (40%) 248 Net income $ 372 Common dividends paid $ 146 Earnings per share $ 3.72
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a The retained earnings balance on December 31 2018 is 160...View the full answer
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Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
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