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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 $ 20 Accounts payable $ 120
Accounts receivable 490 Accruals 270
Inventories 910 Notes payable 240
Total current assets $ 1,420 Total current liabilities $ 630
Net plant and equipment 2,470 Long-term bonds 1,500
Total liabilities $ 2,130
Common stock (100 million shares) 260
Retained earnings $ 1,500
Common equity $ 1,760
Total assets $ 3,890 Total liabilities and equity $ 3,890
Davidson Corporation: Income Statement for Year Ending
December 31, 2018 (Millions of Dollars)
Sales $ 6,500
Operating costs excluding depreciation and amortization 3,250
EBITDA $ 3,250
Depreciation and amortization 325
EBIT $ 2,925
Interest 213
EBT $ 2,712
Taxes (40%) 1,084.8
Net income $ 1,627.2
Common dividends paid $ 764.784
Earnings per share $ 16.272
  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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