The Davidson Corporation’s balance sheet and income statement are provided here.
Davidson Corporation: Balance Sheet as of December 31, 2011 (Millions of Dollars)
| Assets | Liabilities and Equity | |||
| Cash and equivalents | $20 | Accounts payable | $150 | |
| Accounts receivable | 505 | Notes payable | 240 | |
| Inventories | 860 | Accruals | 230 | |
| Total current assets | $1,385 | Total current liabilities | $620 | |
| Net plant and equipment | 2,355 | Long-term bonds | 1,480 | |
| Total debt | $2,100 | |||
| Common stock (100 million shares) | 240 | |||
| Retained earnings | 1,400 | |||
| Common equity | $1,640 | |||
| Total assets | $3,740 | Total liabilities and equity | $3,740 |
Davidson Corporation: Income Statement for Year Ending December 31, 2011 (Millions of Dollars)
| Sales | $7,750 |
| Operating costs excluding depreciation and amortization | 6,587.5 |
| EBITDA | $1,162.5 |
| Depreciation and amortization | 155 |
| EBIT | $1,007.5 |
| Interest | 252 |
| EBT | $755.5 |
| Taxes (40%) | 302.2 |
| Net income | $453.3 |
| Common dividends paid | $260.6475 |
| Earnings per share | $4.533 |
Write out your answer completely. For example, 13 million should be entered as 13,000,000.
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Construct the statement of stockholders’ equity for December 31, 2011. No common stock was issued during 2011. Round your answer to the nearest dollar.
Common Stock Retained Total Stockholders’ Shares Amount Earnings Equity Balances, 12/31/10 $ $ $ 2011 Net income $ Cash dividends $ Addition to RE $ Balances, 12/31/11 $ $ $ - How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary.
$ - 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.
$ - How much money must be paid to current creditors within the next year? Round your answer to the nearest hundredth of million, if necessary.
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