Problem 3-16 Financial Statements

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

Davidson Corporation: Balance Sheet as of December 31, 2016 (Millions of Dollars)

Assets		Liabilities and Equity
Cash and equivalents	$10		Accounts payable	$150
Accounts receivable	470		Accruals	230
Inventories	830		Notes payable	220
Total current assets	$1,310		Total current liabilities	$600
Net plant and equipment	2,440		Long-term bonds	1,500
			Total liabilities	$2,100
			Common stock (100 million shares)	250
			Retained earnings	1,400
			Common equity	$1,650
Total assets	$3,750		Total liabilities and equity	$3,750

Davidson Corporation: Income Statement for Year Ending December 31, 2016 (Millions of Dollars)

Sales	$5,250
Operating costs excluding depreciation and amortization	2,782.5
EBITDA	$2,467.5
Depreciation and amortization	105
EBIT	$2,362.5
Interest	231
EBT	$2,131.5
Taxes (40%)	852.6
Net income	$1,278.9
Common dividends paid	$831.285
Earnings per share	$12.789

1. Construct the statement of stockholders' equity for December 31, 2016. No common stock was issued during 2016. 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, 12/31/15		$	$	$
   2016 Net income
   Cash dividends
   Addition to RE
   Balances, 12/31/16		$	$	$

   Enter your answers for parts b-d in millions. For example, an answer of $25,000,000 should be entered as 25.
2. How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary. $million
3. 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
4. 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