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eBook The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2019 (Millions of Dollars) Assets

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The Davidson Corporation's balance sheet and income statement are provided here.

Davidson Corporation: Balance Sheet as of December 31, 2019
(Millions of Dollars)
Assets Liabilities and Equity
Cash and equivalents $ 20 Accounts payable $ 130
Accounts receivable 520 Accruals 260
Inventories 910 Notes payable 220
Total current assets $ 1,450 Total current liabilities $ 610
Net plant and equipment 2,330 Long-term bonds 1,510
Total liabilities $ 2,120
Common stock (100 million shares) 260
Retained earnings $ 1,400
Common equity $ 1,660
Total assets $ 3,780 Total liabilities and equity $ 3,780

Davidson Corporation: Income Statement for Year Ending
December 31, 2019 (Millions of Dollars)
Sales $ 9,000
Operating costs excluding depreciation and amortization 6,320
EBITDA $ 2,680
Depreciation and amortization 390
EBIT $ 2,290
Interest 150
EBT $ 2,140
Taxes (25%) 535
Net income $ 1,605
Common dividends paid $ 578
Earnings per share $ 16.05

  1. Construct the statement of stockholders' equity for December 31, 2019. No common stock was issued during 2019. Write out all your answers 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.

  2. How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary.

    $ million

  3. 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

  4. 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

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