Problem 3-15 Financial Statements

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	$120
Accounts receivable	515		Notes payable	220
Inventories	920		Accruals	240
Total current assets	$1,450		Total current liabilities	$580
Net plant and equipment	2,380		Long-term bonds	1,500
			Total debt	$2,080
			Common stock (100 million shares)	250
			Retained earnings	1,500
			Common equity	$1,750
Total assets	$3,830		Total liabilities and equity	$3,830

Davidson Corporation: Income Statement for Year Ending December 31, 2014 (Millions of Dollars)

Sales	$4,250
Operating costs excluding depreciation and amortization	2,125
EBITDA	$2,125
Depreciation and amortization	212.5
EBIT	$1,912.5
Interest	208
EBT	$1,704.5
Taxes (40%)	681.8
Net income	$1,022.7
Common dividends paid	$373.2855
Earnings per share	$10.227

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