Reference no: EM131200809

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	610		Accruals	290
Inventories	830		Notes payable	230
Total current assets	$1,450		Total current liabilities	$660
Net plant and equipment	2,480		Long-term bonds	1,490
			Total liabilities	$2,150
			Common stock (100 million shares)	280
			Retained earnings	1,500
			Common equity	$1,780
Total assets	$3,930		Total liabilities and equity	$3,930

Davidson Corporation: Income Statement for Year Ending December 31, 2016 (Millions of Dollars)

Sales	$6,000
Operating costs excluding depreciation and amortization	4,860
EBITDA	$1,140
Depreciation and amortization	360
EBIT	$780
Interest	215
EBT	$565
Taxes (40%)	226
Net income	$339
Common dividends paid	$250.86
Earnings per share	$3.39

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?

3. At the present time, how large a check could be written without it bouncing?

4. How much money must be paid to current creditors within the next year?