Question
Please answer all parts of the question The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December
Please answer all parts of the question
The Davidson Corporation's balance sheet and income statement are provided here.
Davidson Corporation: Balance Sheet as of December 31, 2014 (Millions of Dollars)
Assets | Liabilities and Equity | |||
Cash and equivalents | $15 | Accounts payable | $110 | |
Accounts receivable | 565 | Notes payable | 230 | |
Inventories | 870 | Accruals | 250 | |
Total current assets | $1,450 | Total current liabilities | $590 | |
Net plant and equipment | 2,290 | Long-term bonds | 1,490 | |
Total debt | $2,080 | |||
Common stock (100 million shares) | 260 | |||
Retained earnings | 1,400 | |||
Common equity | $1,660 | |||
Total assets | $3,740 | Total liabilities and equity | $3,740 |
Davidson Corporation: Income Statement for Year Ending December 31, 2014 (Millions of Dollars)
Sales | $5,250 |
Operating costs excluding depreciation and amortization | 3,150 |
EBITDA | $2,100 |
Depreciation and amortization | 105 |
EBIT | $1,995 |
Interest | 208 |
EBT | $1,787 |
Taxes (40%) | 714.8 |
Net income | $1,072.2 |
Common dividends paid | $536.1 |
Earnings per share | $10.722 |
Enter your answers for parts b-d in millions. For example, an answer of $25,000,000 should be entered as 25.
Construct the statement of stockholders' equity for December 31, 2014. No common stock was issued during 2014. 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, 12/31/13 | $ | $ | $ | ||
2014 Net income | $ | ||||
Cash dividends | $ | ||||
Addition to RE | $ | ||||
Balances, 12/31/14 | $ | $ | $ |
How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary. $ million
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
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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