The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2018 (Millions of Dollars) Assets Liabilities and Equity Cash...


The Davidson Corporation's balance sheet and income statement are provided here.













































































































Davidson Corporation: Balance Sheet as of December 31, 2018

(Millions of Dollars)

Assets

Liabilities and Equity
Cash and equivalents$15Accounts payable$100
Accounts receivable515Accruals220
Inventories830Notes payable230
  Total current assets$1,360  Total current liabilities$550
Net plant and equipment2,550Long-term bonds1,500
  Total liabilities$2,050
Common stock (100 million shares)260
Retained earnings$1,600
  Common equity$1,860
Total assets$3,910Total liabilities and equity$3,910








































































Davidson Corporation: Income Statement for Year Ending


December 31, 2018 (Millions of Dollars)
Sales$6,000
Operating costs excluding depreciation and amortization3,780
EBITDA$2,220
Depreciation and amortization420
EBIT$1,800
Interest164
EBT$1,636
Taxes (40%)654.4
Net income$981.6
Common dividends paid$417.18
Earnings per share$9.816


  1. Construct the statement of stockholders' equity for December 31, 2018. No common stock was issued during 2018. 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 StockRetainedTotal Stockholders'
    SharesAmountEarningsEquity
    Balances, 12/31/17$$$
    2018 Net income
    Cash dividends
    Addition to RE
    Balances, 12/31/18$$$

    Enter your answers for parts b-d in millions. For example, an answer of $25,000,000 should be entered as 25.



  2. How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary.



    $   million




  3. 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




  4. 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

Jun 07, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here