The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Income Statement for Year

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The Davidson Corporation's balance sheet and income statement are provided here.

The Davidson Corporation's balance sheet and income statement are provided

Davidson Corporation: Income Statement for Year Ending December 31, 2015
(Millions of Dollars)
Sales...........................................................................................$6,250
Operating costs excluding depreciation and amortization...............................5,230
EBITDA......................................................................................$1,020
Depreciation & amortization..................................................................220
EBIT...........................................................................................$ 800
Interest..........................................................................................180
EBT............................................................................................$ 620
Taxes (40%)....................................................................................248
Net income...................................................................................$ 372
Common dividends paid...................................................................$ 146
Earnings per share..........................................................................$ 3.72
a. Construct the statement of stockholders' equity for December 31, 2015. No common stock was issued during 2015.
b. How much money has been reinvested in the firm over the years?
c. At the present time, how large a check could be written without it bouncing?
d. How much money must be paid to current creditors within the next year?

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Fundamentals of Financial Management

ISBN: 978-1285867977

14th edition

Authors: Eugene F. Brigham, Joel F. Houston

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