Question

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

Davidson Corporation: Balance Sheet as of December 31, 2012 (Millions of Dollars)

Assets			Liabilities and Equity
Cash and equivalents	$20		Accounts payable	$100
Accounts receivable	580		Notes payable	215
Inventories	900		Accruals	210
Total current assets	$1,500		Total current liabilities	$525
Net plant and equipment	2,305		Long-term bonds	1,500
			Total debt	$2,025
			Common stock (100 million shares)	280
			Retained earnings	1,500
			Common equity	$1,780
Total assets	$3,805		Total liabilities and equity	$3,805

Davidson Corporation: Income Statement for Year Ending December 31, 2012 (Millions of Dollars)

Sales	$9,000
Operating costs excluding depreciation and amortization	6,930
EBITDA	$2,070
Depreciation and amortization	540
EBIT	$1,530
Interest	243
EBT	$1,287
Taxes (40%)	514.8
Net income	$772.2
Common dividends paid	$166.023
Earnings per share	$7.722

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, 2012. No common stock was issued during 2012. 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, 12/31/11		$	$	$
	2012 Net income			$
	Cash dividends			$
	Addition to RE				$
	Balances, 12/31/12		$	$	$

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