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The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2019 (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, 2019
(Millions of Dollars)
Assets Liabilities and Equity
Cash and equivalents $ 20 Accounts payable $ 140
Accounts receivable 570 Accruals 270
Inventories 810 Notes payable 230
Total current assets $ 1,400 Total current liabilities $ 640
Net plant and equipment 2,510 Long-term bonds 1,490
Total liabilities $ 2,130
Common stock (100 million shares) 280
Retained earnings $ 1,500
Common equity $ 1,780
Total assets $ 3,910 Total liabilities and equity $ 3,910

Davidson Corporation: Income Statement for Year Ending
December 31, 2019 (Millions of Dollars)
Sales $ 6,250
Operating costs excluding depreciation and amortization 5,210
EBITDA $ 1,040
Depreciation and amortization 260
EBIT $ 780
Interest 140
EBT $ 640
Taxes (25%) 160
Net income $ 480
Common dividends paid $ 200
Earnings per share $ 4.80

  1. Construct the statement of stockholders' equity for December 31, 2019. No common stock was issued during 2019. 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, 12/31/18 $ $ $
    2019 Net income
    Cash dividends
    Addition to RE
    Balances, 12/31/19 $ $ $

    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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