The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2016 (Millions of Dollars) Assets Liabilities and Equity Cash and equivalents $10 Accounts payable $140 Accounts receivable 495 Accruals 250 Inventories 920 Notes payable 230 Total current assets $1,425 Total current liabilities $620 Net plant and equipment 2,455 Long-term bonds 1,480 Total liabilities $2,100 Common stock (100 million shares) 280 Retained earnings 1,500 Common equity $1,780 Total assets $3,880 Total liabilities and equity $3,880 Davidson Corporation: Income Statement for Year Ending December 31, 2016 (Millions of Dollars) Sales $6,000 Operating costs excluding depreciation and amortization 3,000 EBITDA $3,000 Depreciation and amortization 120 EBIT $2,880 Interest 147 EBT $2,733 Taxes (40%) 1,093.2 Net income $1,639.8 Common dividends paid $377.154 Earnings per share $16.398 Construct the statement of stockholders' equity for December 31, 2016. No common stock was issued during 2016. 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, 12/31/15 $ $ $ 2016 Net income Cash dividends Addition to RE Balances, 12/31/16 $ $ $ 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, 2016 (Millions of Dollars) Assets Liabilities and Equity Cash and equivalents $10 Accounts payable $140 Accounts receivable 495 Accruals 250 Inventories 920 Notes payable 230 Total current assets $1,425 Total current liabilities $620 Net plant and equipment 2,455 Long-term bonds 1,480 Total liabilities $2,100 Common stock (100 million shares) 280 Retained earnings 1,500 Common equity $1,780 Total assets $3,880 Total liabilities and equity $3,880 Davidson Corporation: Income Statement for Year Ending December 31, 2016 (Millions of Dollars) Sales $6,000 Operating costs excluding depreciation and amortization 3,000 EBITDA $3,000 Depreciation and amortization 120 EBIT $2,880 Interest 147 EBT $2,733 Taxes (40%) 1,093.2 Net income $1,639.8 Common dividends paid $377.154 Earnings per share $16.398 Construct the statement of stockholders' equity for December 31, 2016. No common stock was issued during 2016. 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, 12/31/15 $ $ $ 2016 Net income Cash dividends Addition to RE Balances, 12/31/16 $ $ $ 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Davidson Corporation's balance sheet and income statement are provided here.

Davidson Corporation: Balance Sheet as of December 31, 2016
(Millions of Dollars)
Assets		Liabilities and Equity
Cash and equivalents	$10	Accounts payable	$140
Accounts receivable	495	Accruals	250
Inventories	920	Notes payable	230
Total current assets	$1,425	Total current liabilities	$620
Net plant and equipment	2,455	Long-term bonds	1,480
		Total liabilities	$2,100
		Common stock (100 million shares)	280
		Retained earnings	1,500
		Common equity	$1,780
Total assets	$3,880	Total liabilities and equity	$3,880

Davidson Corporation: Income Statement for Year Ending December 31, 2016
(Millions of Dollars)
Sales	$6,000
Operating costs excluding depreciation and amortization	3,000
EBITDA	$3,000
Depreciation and amortization	120
EBIT	$2,880
Interest	147
EBT	$2,733
Taxes (40%)	1,093.2
Net income	$1,639.8
Common dividends paid	$377.154
Earnings per share	$16.398

Construct the statement of stockholders' equity for December 31, 2016. No common stock was issued during 2016. 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, 12/31/15		$	$	$
2016 Net income
Cash dividends
Addition to RE
Balances, 12/31/16		$	$	$

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

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