3-16 FINANCIAL STATEMENTS The Davidson Corporation's balance sheet and income state- ment are provided here. Davidson Corporation: Balance Sheet as of December 31, 2018 (Millions of Dollars) Liabilities and Equity Assets Cash and equivalents $ 15 $ 120 Accounts receivable 515 280 880 220 Inventories Total current assets Net plant and equipment Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities $1,410 $ 620 2,590 1,520 $2,140 260 1,600 Common stock (100 million shares) Retained earnings Common equity Total liabilities and equity $1,860 $4,000 Total assets $4,000 Davidson Corporation: Income Statement for Year Ending December 31, 2018 (Millions of dollars) $ 6,250 5,230 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT $ 1,020 220 $ 800 Interest 180 EBT $ 620 248 Taxes (40%) Net income $ 372 $ 146 Common dividends paid Earnings per share $ 3.72 a. Construct the statement of stockholders' equity for December 31, 2018. No common stock was issued during 2018. 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