Financial statements 1"he Davidson Corporation's balance sheet and income statement are elven here Davidson Corporation: Balance Sheet as of December 31, (Millions of Dollars) Liabilities and Equity...

Financial statements
1"he
Davidson Corporation's balance sheet and

income

statement

are elven here

Davidson Corporation:

Balance Sheet as of December

31,

(Millions of Dollars)

Liabilities and Equity

15
Accounts payable

515

Notes payable

880

51.410
Total current liabilities
2,590
Long-term bonds

Total debt
Common stock

(100 million shares'
260
Retained earnings

Common equity
54,000
Total liabilities and equity

	Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets
		1.600 51.860 54.000

Extracted text: Davidson Corporation: Income Statement for Year Ending December 31, 2005 (Millions of Dollars) Sales $6,250 Operating costs excluding depreciation and amortization 5,230 ЕBITDA $1,020 Depreciation and amortization 220 EBIT $ 800 Interest 180 EBT $ 620 Taxes (40%) 248 $ 372 $ 146 $ 3.72 Net income Common dividends paid Earnings per share All revenues were received in cash during the year and all costs except depreciation and amortization were paid in cash during the year. What was net cash flow? How was it different from reported accounting profit? b. Construct the statement of retained earnings for December 31, 2005. c. How much money has been reinvested in the firm over the years? d. At the present time, how large a check could be written without it bouncing? e. How much money must be paid to current creditors within the next year? а.