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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 Liabilities

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 Liabilities and Equity
Cash and equivalents $ 10 Accounts payable $ 150
Accounts receivable 480 Accruals 260
Inventories 820 Notes payable 225
Total current assets $ 1,310 Total current liabilities $ 635
Net plant and equipment 2,665 Long-term bonds 1,490
Total liabilities $ 2,125
Common stock (100 million shares) 250
Retained earnings $ 1,600
Common equity $ 1,850
Total assets $ 3,975 Total liabilities and equity $ 3,975

Davidson Corporation: Income Statement for Year Ending
December 31, 2018 (Millions of Dollars)
Sales $ 8,500
Operating costs excluding depreciation and amortization 6,205
EBITDA $ 2,295
Depreciation and amortization 255
EBIT $ 2,040
Interest 255
EBT $ 1,785
Taxes (40%) 714
Net income $ 1,071
Common dividends paid $ 664.02
Earnings per share $ 10.71
  1. 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.
    Common Stock Retained Total Stockholders'
    Shares Amount Earnings Equity
    Balances, 12/31/17 $ $ $
    2018 Net income
    Cash dividends
    Addition to RE
    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.

  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

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