FINANCIAL STATEMENTS The Davidson

Corporation’s balance sheet and income

statement are provided here.

Davidson Corporation:
Balance Sheet as of
December 31, 2008
(Millions of Dollars)
Assets Liabilities and Equity
Cash and equivalents $ 15 Accounts payable $ 120
Accounts receivable 515 Notes payable 220
Inventories 880 Accruals 280
Total current assets $1,410 Total current liabilities $ 620
Net plant and equipment 2,590 Long-term bonds 1,520
Total debt $ 2,140
Common stock (100 million shares) 260
Retained earnings 1,600
Common equity $ 1,860
Total assets $4,000 Total liabilities and equity $ 4,000

Davidson Corporation: Income Statement

For Year Ending December 31, 2008 (Millions of Dollars)
Sales $6,250
Operating costs excluding depreciation and amortization 5,230
EBITDA $1,020
Depreciation & amortization 220
EBIT $ 800
Interest 180
EBT $ 620
Taxes (40%) 248
Net income $ 372

Common dividends paid $ 146

Earnings per share $ 3.72
a. Construct the statement of stockholders’ equity for December 31, 2008.
b. How much money has been reinvested in the firm over the years?
c. At the present time, how large a check could be written without it
bouncing?
d. How much money must be paid to current creditors within the next
year?
Soal:
a. Construct the statement of stockholders’ equity for December 31, 2016. No common stock
was issued during 2016. b. How much money has been reinvested in the firm over the years? c.
At the present time, how large a check could be written without it bouncing? d. How much
money must be paid to current creditors within the next year?
Jawaban:
1