ngs per share 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 Balances, 12/31/20 2021 Net Income Cash dividends Addition to RE Shares 6.60 Amount Retained Earnings Total Stockholders' Equity Balances, 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Cash and equivalents
Accounts receivable
Inventories
Total current assets
Net plant and equipment
Total assets
EBIT
Interest
EBT
Taxes (25%)
Net Income
$
Common dividends paid
Earnings per share
Liabilities and Equity
20 Accounts payable
525 Accruals
850 Notes payable
$ 1,395
2,525
Davidson Corporation: Income Statement for Year Ending
December 31, 2021 (millions of dollars)
Total current liabilities
Long-term bonds
Total liabilities
Common stock (100 million shares)
Retained earnings
Common equity
$ 3,920 Total llabilities and equity
Sales
Operating costs excluding depreciation and amortization
EBITDA
Depreciation and amortization
$
Shares
Common Stock
$
$
$
$ 130
280
230
640
1,500
$ 2,140
280
$ 5,750
4,440
$ 1,310
240
$ 1,070
190
880
220
660
$
$
$
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.
$ 1,500
$ 1,780
$ 3,920
213
6.60
Amount
Balances, 12/31/20
2021 Net Income
Cash dividends
Addition to RE
Balances, 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.
Retained
Earnings
$
Total Stockholders'
Equity
$
$
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
Transcribed Image Text: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 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets EBIT Interest EBT Taxes (25%) Net Income $ Common dividends paid Earnings per share Liabilities and Equity 20 Accounts payable 525 Accruals 850 Notes payable $ 1,395 2,525 Davidson Corporation: Income Statement for Year Ending December 31, 2021 (millions of dollars) Total current liabilities Long-term bonds Total liabilities Common stock (100 million shares) Retained earnings Common equity $ 3,920 Total llabilities and equity Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization $ Shares Common Stock $ $ $ $ 130 280 230 640 1,500 $ 2,140 280 $ 5,750 4,440 $ 1,310 240 $ 1,070 190 880 220 660 $ $ $ 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. $ 1,500 $ 1,780 $ 3,920 213 6.60 Amount Balances, 12/31/20 2021 Net Income Cash dividends Addition to RE Balances, 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. Retained Earnings $ Total Stockholders' Equity $ $ 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
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