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The Davidson Corporations balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of De
5,500 3,300 2,200 165 2,035 Sales Operating costs excluding EBITDA Depreciation and EBIT Interest EBT Taxes (40%) Net income
/ / Shares Earnings Equity / / Balances, 12/31/17 2018 Net income Cash dividends 18 Addition to RE / / Balances, 12/31/18 Ent
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Answer #1

Answer a. Balances, 12/31/17 2018 Net income Cash dividends Addition to RE Balances, 12/31/18 Common Stock Retained Earnings

Answer b.
Amount reinvested = Ending retained earnings
Amount reinvested = $1,400 million

Answer c.
Maximum amount of check = Cash and equivalents
Maximum amount of check = $15 million

Answer d.
Amount to be paid to creditors = Total current liabilities
Amount to be paid to creditors = $660 million

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