The Smythe-Davidson Corporation just issued its annual report. The current year's balance sheet and income statement as they appeared in the annual report are given below. Answer the questions that follow based on information given in the financial statements.

Smythe-Davidson Corporation: Balance Sheet as of December 31, 2001 (Millions of Dollars)

Smythe-Davidson Corporation: Income Statement for Year Ending December 31, 2001 (Millions of Dollars)
Sales................................................................ $6,250
Operating costs excluding depreciation.........................5,230
EBITDA........................................................... $1,020
Depreciation.......................................................... 220
EBIT................................................................. $ 800
Less: Interest..........................................................180
EBT..................................................................$ 620
Taxes (40%).......................................................... 248
Net income before preferred dividends........................ $ 372
Preferred dividends.................................................... 8
Net income available to common stockholders............... $ 364
Common dividends paid......................................... $ 146
Earnings per share..................................................$3.64
a. Assume that all of the firm's revenues were received in cash during the year and that all costs except depreciation were paid in cash during the year. What is the firm's net cash flow available to common stockholders for the year? How is this number different from the accounting profit reported by the firm?
b. Construct the firm's Statement of Retained Earnings for December 31, 2001.
c. How much money has the firm reinvested in itself over the years instead of paying out dividends?
d. At the present time, how large a check could the firm write without it bouncing?
e. How much money must the firm pay its current creditors within the next year?

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ASSETS LIABILITIES AND EQUITY Cash and marketable securities S 15 515 Notes payable 880 Accruals Accounts payable S 120 220 280 S 620 1.520 $2,140 80 Common stock (100 million shares 260 1520 Accounts receivable Inventories Total current assets $1,410 Total current liabilities Net plant and equipment 2,590 Long-term bonds Total debt Preferred stock (800,000 shares) Retained earnings Common equity Total liabilities and equity Total assets $4,000 $4,000