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The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2012 (Millions of Dollars) ASSETS LIABILITIES AND EQUITY Accounts payable Notes payable Accruals $15 515 Cash and marketable securities $120 220 Accounts receivable Inventories 880 $1,410 2,590 280 $620 1.520 $2,140 Common stock (100 million shares) 260 1.600 $1.860 Total liabilities and equity $4.000 Total current assets Total current liabilities Net plant and equipment Long-term bonds Total debt Retained earnings Common equity Total assets $4.000 PROBLEM Ch3/Q14 Davidson Corporation: Income Statement for Year Ending December 31, 2012 (Millions of Dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT Interest EBT $6,250 5.230 $1,020 220 $ 800 180 620 Taxes (40%) 248 $372 Net income Common dividends paid Earnings per share $146 $3.72

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Ancol Statement of stockholder's Equity for Dec 31, 2012 common stock (100m Sharee issued pal valise 3-6]] $: 260M Add & Retained Earning $ 1600M Potal Shareholder's Equity 1860 M - And B The money reinverted in the firm over the years as ] $ 1600 Millionda Retaired Earnings I Retained Earnings are portion of net income retain by I company for future plant & expansion of businew, I Am cll at the present time, how large a check could be ileritten without bouncing y 15 Millions of Cash & Marketable securitiel. (15) IZ And all All inseert liabilites will be paid within one Creare of the last date of the financial year So the money must be paid to curent creditors with in the next year u & 620 milion as Current liabilities