Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Someone help me please to solve this Problem 3-16 Financial Statements The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance

Someone help me please to solve this

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, 2014 (Millions of Dollars) Assets Liabilities and Equity Cash and equivalents $10 Accounts payable $110 Accounts receivable 555 Notes payable 230 Inventories 850 Accruals 270 Total current assets $1,415 Total current liabilities $610 Net plant and equipment 2,545 Long-term bonds 1,490 Total debt $2,100 Common stock (100 million shares) 260 Retained earnings 1,600 Common equity $1,860 Total assets $3,960 Total liabilities and equity $3,960

Assets Liabilities and Equity
Cash and equivalents $10 Accounts payable $110
Accounts receivable 555 Notes payable 230
Inventories 850 Accruals 270
Total current assets $1,415 Total current liabilities $610
Net plant and equipment 2,545 Long-term bonds 1,490
Total debt $2,100
Common stock (100 million shares) 260
Retained earnings 1,600
Common equity $1,860
Total assets $3,960 Total liabilities and equity $3,960

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

Sales $4,500
Operating costs excluding depreciation and amortization 2,880
EBITDA $1,620
Depreciation and amortization 180
EBIT $1,440
Interest 231
EBT $1,209
Taxes (40%) 483.6
Net income $725.4
Common dividends paid $406.224
Earnings per share $7.254

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 $ $ $

Davidson Corporation: Income Statement for Year Ending December 31, 2014 (Millions of Dollars) Sales $4,500 Operating costs excluding depreciation and amortization 2,880 EBITDA $1,620 Depreciation and amortization 180 EBIT $1,440 Interest 231 EBT $1,209 Taxes (40%) 483.6 Net income $725.4 Common dividends paid $406.224 Earnings per share $7.254 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 $ $ $ 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. $ 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Complete Handbook Of Operational And Management Auditing

Authors: William T. Thornhill

1st Edition

0131611410, 978-0131611412

More Books

Students also viewed these Accounting questions

Question

Address an envelope properly.

Answered: 1 week ago

Question

Discuss guidelines for ethical business communication.

Answered: 1 week ago