Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 3 1 , 2 0 2 1

The Davidson Corporation's balance sheet and income statement are provided here.
Davidson Corporation: Balance Sheet as of December 31,2021
(millions of dollars)
Assets Liabilities and Equity
Cash and equivalents $ 20 Accounts payable $ 140
Accounts receivable 510 Accruals 320
Inventories 850 Notes payable 210
Total current assets $ 1,380 Total current liabilities $ 670
Net plant and equipment 2,630 Long-term bonds 1,490
Total liabilities $ 2,160
Common stock (100 million shares)250
Retained earnings $ 1,600
Common equity $ 1,850
Total assets $ 4,010 Total liabilities and equity $ 4,010
Davidson Corporation: Income Statement for Year Ending
December 31,2021(millions of dollars)
Sales $ 6,000
Operating costs excluding depreciation and amortization 4,520
EBITDA $ 1,480
Depreciation and amortization 150
EBIT $ 1,330
Interest 210
EBT $ 1,120
Taxes (25%)280
Net income $ 840
Common dividends paid $ 297
Earnings per share $ 8.40
Construct the statement of stockholders' equity for December 31,2021. No common stock was issued during 2021. 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, 12/31/20
$
$
$
2021 Net income
Cash dividends
Addition to RE
Balances, 12/31/21
$
$
$
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

International Finance Transactions Policy And Regulation

Authors: Hal S. Scott

15th Edition

159941547X, 978-1599415475

More Books

Students also viewed these Finance questions

Question

b. Did you suppress any of your anger? Explain.

Answered: 1 week ago