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

The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2019 (Millions of Dollars) Assets Liabilities and Equity Cash and equivalents $ 15 Accounts payable $ 110 Accounts receivable 540 Accruals 250 Inventories 900 Notes payable 215 Total current assets $ 1,455 Total current liabilities $ 575 Net plant and equipment 2,390 Long-term bonds 1,500 Total liabilities $ 2,075 Common stock (100 million shares) 270 Retained earnings $ 1,500 Common equity $ 1,770 Total assets $ 3,845 Total liabilities and equity $ 3,845 Davidson Corporation: Income Statement for Year Ending December 31, 2019 (Millions of Dollars) Sales $ 6,000 Operating costs excluding depreciation and amortization 4,460 EBITDA $ 1,540 Depreciation and amortization 350 EBIT $ 1,190 Interest 170 EBT $ 1,020 Taxes (25%) 255 Net income $ 765 Common dividends paid $ 305 Earnings per share $ 7.65 Construct the statement of stockholders' equity for December 31, 2019. No common stock was issued during 2019. 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, 12/31/18 $ $ $ 2019 Net income Cash dividends Addition to RE Balances, 12/31/19 $ $ $ Enter your answers for parts b-d in millions. For example, an answer of $25,000,000 should be entered as 25. How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary. $ million 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 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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Answer #1

Answer a. Retained Earnings Common Stock Shares Amount 100,000,000 $ 270,000,000 Total Stockholders $ 1,310,000,000 Balances

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