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Davidson Corporation: Balance Sheet as of December 31, 2019 (millions of dollars) Liabilities and Equity $ 15 Accounts payable 515 Accruals 880 Notes payable $1,410 Total current liabilities 2,590 Long-term bonds Total liabilities Common stock (100 million shares) Retained earnings Common equity $4,000 Total liabilities and equity Davidson Corporation: Income Statement for Year Ending December 31, 2019 (millions of dollars) Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25%) Net income Common dividends paid Earnings per share $ 6,250 5,230 $ 1,020 220 800 180 $ 620 155 $ 465 $ 183 $ 4.65 $ 120 280 220 $ 620 1,520 $2,140 260 1,600 $1,860 $4,000 a. Construct the statement of stockholders' equity for December 31, 2019. No common stock was issued during 2019. b. How much money has been reinvested in the firm over the years? C. At the present time, how large a check could be written without it bouncing? d. How much money must be paid to current creditors within the next year? 3-16 a. RE2018 = $1,318 million. b. $1,600 million. c. $15 million. d. $620 million

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