Question

FINANCIAL STATEMENTS

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	$20		Accounts payable	$130
Accounts receivable	545		Accruals	230
Inventories	860		Notes payable	235
Total current assets	$1,425		Total current liabilities	$595
Net plant and equipment	2,330		Long-term bonds	1,480
			Total liabilities	$2,075
			Common stock (100 million shares)	280
			Retained earnings	1,400
			Common equity	$1,680
Total assets	$3,755		Total liabilities and equity	$3,755

Davidson Corporation: Income Statement for Year Ending December 31, 2016
(Millions of Dollars)
Sales	$6,750
Operating costs excluding depreciation and amortization	3,037.5
EBITDA	$3,712.5
Depreciation and amortization	472.5
EBIT	$3,240
Interest	249
EBT	$2,991
Taxes (40%)	1,196.4
Net income	$1,794.6
Common dividends paid	$951.138
Earnings per share	$17.946

1. 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.

2. How much money has been reinvested in the firm over the years? Round your answer to the nearest hundredth of million, if necessary.
   
   $   million
   
3. 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
   
4. 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 1