Financial Statements The Davidson Corporation\'s balance sheet and income statem

Question

Financial Statements

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

Davidson Corporation: Balance Sheet as of December 31, 2014 (Millions of Dollars)

Davidson Corporation: Income Statement for Year Ending December 31, 2014 (Millions of Dollars)

Enter your answers for parts b-d in millions. For example, an answer of $25,000,000 should be entered as 25.

Construct the statement of stockholders' equity for December 31, 2014. No common stock was issued during 2014. 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.

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

Assets Liabilities and Equity Cash and equivalents $15    Accounts payable $120 Accounts receivable 605    Notes payable 210 Inventories 850    Accruals 260   Total current assets $1,470      Total current liabilities $590 Net plant and equipment 2,370    Long-term bonds 1,500      Total debt $2,090    Common stock (100 million shares) 250    Retained earnings 1,500      Common equity $1,750 Total assets $3,840    Total liabilities and equity $3,840

Explanation / Answer

a)

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

Money has been reinvested in the firm over the years = $ 1500 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.

Check could be written without it bouncing = $ 15 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.

Money must be paid to current creditors within the next year = $ 590

Common Stock Retained Total Stockholders' Shares Amount Earnings Equity Balances, 12/31/13 100 Million            250,000,000 1,268,779,500             1,518,779,500 2014 Net income     758,100,000 Cash dividends     526,879,500 Addition to RE     231,220,500               231,220,500 Balances, 12/31/14               250,000,000 1,500,000,000             1,750,000,000

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