Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Davidson Corporation: Balance Sheet as of December 31, 2019 (Millions of Dollars) Assets Liabilities and Equity Cash and equivalents $ 10 Accounts payable $ 110

image text in transcribed
image text in transcribed
Davidson Corporation: Balance Sheet as of December 31, 2019 (Millions of Dollars) Assets Liabilities and Equity Cash and equivalents $ 10 Accounts payable $ 110 Accounts receivable 470 Accruals 210 Inventories 910 Notes payable 215 Total current assets $ 1,390 Total current liabilities $ 535 Net plant and equipment 2,305 Long-term bonds 1,480 Total liabilities $ 2,015 Common stock (100 million shares) 280 Retained earnings $ 1,400 Common equity $ 1,680 Total assets $ 3,695 Total liabilities and equity $ 3,695 Davidson Corporation: Income Statement for Year Ending December 31, 2019 (Millions of Dollars) $ 8,250 Operating costs excluding depreciation and amortization 5,960 $ 2,290 Depreciation and amortization 400 $ 1,890 Interest EBT 1,680 Taxes (25%) 420 Net income 1,260 Common dividends paid Earnings per share Sales EBITDA EBIT 210 $ $ $ $ 578 12.60 a. Construct the statement of stockholders' equity for December 31, 2019. No common stock was issued during 2019. Write out all your answ completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest share or dollar Common Stock Retained Total Stockholders Shares Amount Earnings Equity Balances, 12/31/18 $ $ $ 2019 Net income Cash dividends Addition to RE Balances, 12/31/19 $ Enter your answers for parts b-d in millions. For example, an answer of $25,000,000 should be entered as 25. b. How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary. $ million c. At the present time, how large a check could be written without it bouncing? Round your answer to the nearest hundredth of million, if necessary $ million d. How much money must be paid to current creditors within the next year? Round your answer to the nearest hundredth of million, if necessary. $ million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions