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FINANCIAL STATEMENTS The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance...

FINANCIAL STATEMENTS

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

Davidson Corporation: Balance Sheet as of December 31, 2016
(Millions of Dollars)
Assets Liabilities and Equity
Cash and equivalents $10    Accounts payable $130
Accounts receivable 545    Accruals 210
Inventories 890    Notes payable 230
  Total current assets $1,445      Total current liabilities $570
Net plant and equipment 2,495    Long-term bonds 1,520
     Total liabilities $2,090
   Common stock (100 million shares) 250
   Retained earnings 1,600
     Common equity $1,850
Total assets $3,940    Total liabilities and equity $3,940
Davidson Corporation: Income Statement for Year Ending December 31, 2016
(Millions of Dollars)
Sales $6,000
Operating costs excluding depreciation and amortization 4,680
EBITDA $1,320
Depreciation and amortization 120
EBIT $1,200
Interest 209
EBT $991
Taxes (40%) 396.4
Net income $594.6
Common dividends paid $448.923
Earnings per share $5.946
  1. Construct the statement of stockholders' equity for December 31, 2016. No common stock was issued during 2016. 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, 12/31/15    $   $   $  
    2016 Net income   
    Cash dividends   
    Addition to RE   
    Balances, 12/31/16    $   $   $  

    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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