Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2018 (Millions of Dollars) Assets Cash
The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2018 (Millions of Dollars) Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Davidson Corporation: Income Statement for Year Ending December 31, 2018 (Millions of Dollars) EBIT Interest EBT Taxes (40%) Net income $ 15 Accounts payable Accruals Notes payable 580 890 $1,485 Total current liabilities 2,545 Long-term bonds Total liabilities Common stock (100 million shares) Retained earnings Common equity $ 4,030 Total liabilities and equity Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Common dividends paid Earnings per share 150 260 220 630 1,520 $ 2,150 280 $1,600 $1,880 $4,030 $ 9. 912. 312 312 3/219 2 416.202 a. Construct the statement of stockholders' equity for December 31, 2018. No common stock was issued during 2018. 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. Balances, 12/31/17 2018 Net income Cash dividends Addition to RE $ $ million $ Shares million Common Stock $ million Amount Balances, 12/31/18 $ $ Enter your answers for parts b-d in millions. For example, an answer of $25,000,000 should be entered as 25. b. How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary. $ Retained Earnings $ c. 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. Total Stockholders' $ Equity d. How much money must be paid to current creditors within the next year? Round your answer to the nearest hundredth of million, if necessary
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started