50.1K

Verified Solution

Link Copied!

The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2021 (millions of dollars) Assets Liabilities and Equity Cash and $ 10 Accounts payable $ 130 equivalents Accounts 525 Accruals 260 receivable Inventories 830 Notes payable 215 Total current $1,365 Total current liabilities $ 605 assets Net plant and 2,500 Long-term bonds 1,510 equipment Total liabilities $2,115 Common stock (100 250 million shares) Retained earnings $1,500 Common equity 1,750 Total assets $3,865 Total liabilities and equity $3,865 Davidson Corporation: Income Statement for Year Ending December 31, 2021 (millions of dollars) Sales $8,000 Operating costs excluding depreciation and 5,660 amortization EBITDA $2,340 Depreciation and amortization 240 EBIT $2,100 Interest 220 EBT $1,880 Taxes (25%) 470 Net income $1,410 Common dividends paid $ 457 Earnings per share $14.10 a. Construct the statement of stockholders' equity for December 31, 2021. No common stock was issued during 2021. 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 Stock Retained Total Stockholders' Shares Amount Earnings Equity Balances, 100,000,000 $ 250,000,000 $ $ 12/31/20 2021 Net income 1,410,000,00 Cash dividends -457,000,00 Addition to RE Balances, 100,000,000 $ 250,000,000 $ $ 12/31/21 Enter your answers for parts b-d in millions. For example, an answer of $25,000,000 should be entered as 25. b. How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary. $ million C. 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 d. 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

Answer & Explanation Solved by verified expert

See Answer