Problem 3-14 Financial Statements

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

Davidson Corporation: Balance Sheet as of December 31, 2012 (Millions of Dollars)

Assets			Liabilities and Equity
Cash and equivalents	$10		Accounts payable	$110
Accounts receivable	490		Notes payable	225
Inventories	850		Accruals	240
Total current assets	$1,350		Total current liabilities	$575
Net plant and equipment	2,585		Long-term bonds	1,500
			Total debt	$2,075
			Common stock (100 million shares)	260
			Retained earnings	1,600
			Common equity	$1,860
Total assets	$3,935		Total liabilities and equity	$3,935

Davidson Corporation: Income Statement for Year Ending December 31, 2012 (Millions of Dollars)

Sales	$8,750
Operating costs excluding depreciation and amortization	4,112.5
EBITDA	$4,637.5
Depreciation and amortization	175
EBIT	$4,462.5
Interest	249
EBT	$4,213.5
Taxes (40%)	1,685.4
Net income	$2,528.1
Common dividends paid	$657.306
Earnings per share	$25.281

1. Construct the statement of stockholders' equity for December 31, 2012. No common stock was issued during 2012. 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, 12/31/11		$	$	$
   	2012 Net income			$
   	Cash dividends			$
   	Addition to RE				$
   	Balances, 12/31/12		$	$	$

Enter your answers for parts b-d in millions. For example, an answer of $25,000,000 should be entered as 25.

How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary. $ millionAt the present time, how large a check could be written without it bouncing? Round your answer to the nearest hundredth of million, if necessary.$ millionHow much money must be paid to current creditors within the next year? Round your answer to the nearest hundredth of million, if necessary.$ million