Question

Arlington Corporation's financial statements (dollars and shares are in millions) are provided here.

Balance Sheets as of December 31
	2019		2018
Assets
Cash and equivalents	$  13,000		$  11,000
Accounts receivable	35,000		30,000
Inventories	30,380		26,000
Total current assets	$ 78,380		$ 67,000
Net plant and equipment	46,000		45,000
Total assets	$124,380		$112,000
Liabilities and Equity
Accounts payable	$ 10,300		$  8,000
Accruals	7,700		6,000
Notes payable	6,300		5,050
Total current liabilities	$ 24,300		$ 19,050
Long-term bonds	15,000		15,000
Total liabilities	$ 39,300		$ 34,050
Common stock (4,000 shares)	40,000		40,000
Retained earnings	45,080		37,950
Common equity	$ 85,080		$ 77,950
Total liabilities and equity	$124,380		$112,000

Income Statement for Year Ending December 31, 2019
Sales	$237,000
Operating costs excluding depreciation and amortization	190,000
EBITDA	$ 47,000
Depreciation & amortization	8,000
EBIT	$ 39,000
Interest	950
EBT	$ 38,050
Taxes (25%)	9,512.50
Net income	$ 28,537.50
Dividends paid	21,407.50

Construct Arlington's 2019 statement of stockholders' equity.

Statement of Stockholders' Equity, 2019
	Common Stock		Retained Earnings	Total Stockholders' Equity
	Shares	Amount
Balances, 12/31/18	million	$    million	$    million	$    million
2019 Net Income			million
Cash Dividends			million
Addition to retained earnings				million
Balances, 12/31/19	million	$    million	$    million	$    million

Answer 1

Solution: Statement of Stockholders' Equity, 2019 Common Stock Retained Total Stockholders' Shares Amount Earnings Equity Balances, 12/31/18 4000 40000 37950 77950 2019 Net Income 28538 28538 Cash Dividends -21408 -21408 Addition to retained earnings 7130 7130 Balances, 12/31/19 4000 40000 45080 85080