g3.10

Davidson Corporation: Balance Sheet as of December 31, 2019 (Millions of Dollars) Assets Liabilities and Equity Cash and $ 15 Accounts payable $ 140 equivalents Accounts 470 Accruals 300 receivable Inventories 900 Notes payable 230 Total current $1,385 Total current liabilities $ 670 assets Net plant and 2,585 Long-term bonds 1,520 equipment Total liabilities $ 2,190 Common stock (100 280 million shares) Retained earnings $ 1,500 Common equity $ 1,780 Total assets $3,970 Total liabilities and $3,970 equity Davidson Corporation: Income Statement for Year Ending December 31, 2019 (Millions of Dollars) Sales $5,500 Operating costs excluding depreciation and 4,490 amortization EBITDA $1,010 Depreciation and amortization 150 EBIT Interest EBT Taxes (25%) Net income Common dividends paid $ 196 Earnings per share $ 4.50 860 $ 450 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 Shares Amount Retained Earnings Total Stockholders' 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