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 equivalents $ 20 Accounts payable $ 140 Accounts receivable 475 Accruals 310 Inventories 890 Notes payable 225 Total current assets $ 1,385 Total current liabilities $ 675 Net plant and equipment 2,560 Long-term bonds 1,500 Total liabilities $ 2,175 Common stock (100 million shares) 270 Retained earnings $ 1,500 Common equity $ 1,770 Total assets $ 3,945 Total liabilities and equity $ 3,945 Davidson Corporation: Income Statement for Year Ending December 31, 2021 (millions of dollars) Sales $ 8,500 Operating costs excluding depreciation and amortization 5,650 EBITDA $ 2,850 Depreciation and amortization 500 EBIT $ 2,350 Interest 230 EBT $ 2,120 Taxes (25%) 530 Net income $ 1,590 Common dividends paid $ 681 Earnings per share $ 15.90 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, 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. How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary. $ million 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 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

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 equivalents $ 20 Accounts payable $ 140 Accounts receivable 475 Accruals 310 Inventories 890 Notes payable 225 Total current assets $ 1,385 Total current liabilities $ 675 Net plant and equipment 2,560 Long-term bonds 1,500 Total liabilities $ 2,175 Common stock (100 million shares) 270 Retained earnings $ 1,500 Common equity $ 1,770 Total assets $ 3,945 Total liabilities and equity $ 3,945 Davidson Corporation: Income Statement for Year Ending December 31, 2021 (millions of dollars) Sales $ 8,500 Operating costs excluding depreciation and amortization 5,650 EBITDA $ 2,850 Depreciation and amortization 500 EBIT $ 2,350 Interest 230 EBT $ 2,120 Taxes (25%) 530 Net income $ 1,590 Common dividends paid $ 681 Earnings per share $ 15.90 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, 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. How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary. $ million 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 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

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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			Liabilities and Equity
Cash and equivalents	$	20		Accounts payable	$	140
Accounts receivable		475		Accruals		310
Inventories		890		Notes payable		225
Total current assets	$	1,385		Total current liabilities	$	675
Net plant and equipment		2,560		Long-term bonds		1,500
				Total liabilities	$	2,175
				Common stock (100 million shares)		270
				Retained earnings	$	1,500
				Common equity	$	1,770
Total assets	$	3,945		Total liabilities and equity	$	3,945

Davidson Corporation: Income Statement for Year Ending
December 31, 2021 (millions of dollars)
Sales	$	8,500
Operating costs excluding depreciation and amortization		5,650
EBITDA	$	2,850
Depreciation and amortization		500
EBIT	$	2,350
Interest		230
EBT	$	2,120
Taxes (25%)		530
Net income	$	1,590
Common dividends paid	$	681
Earnings per share	$	15.90

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, 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.

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

$ million
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
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

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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