• 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				Liabilities and Equity
Cash and equivalents	$	15		Accounts payable	$	100
Accounts receivable		530		Accruals		230
Inventories		880		Notes payable		210
Total current assets	$	1,425		Total current liabilities	$	540
Net plant and equipment		2,375		Long-term bonds		1,500
				Total liabilities	$	2,040
				Common stock (100 million shares)		260
				Retained earnings	$	1,500
				Common equity	$	1,760
Total assets	$	3,800		Total liabilities and equity	$	3,800

Davidson Corporation: Income Statement for Year Ending
December 31, 2019 (Millions of Dollars)
Sales	$	8,000
Operating costs excluding depreciation and amortization		6,580
EBITDA	$	1,420
Depreciation and amortization		500
EBIT	$	920
Interest		160
EBT	$	760
Taxes (25%)		190
Net income	$	570
Common dividends paid	$	249
Earnings per share	$	5.70

a. 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 0 $ 2019 Net income Cash dividends Addition to RE Balances, 12/31/19 $ $ * $