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FINANCIAL STATEMENTS The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Income Statement for Year Ending December 31, 2018 (Millions of Dollars) Sales $ 6250 Operating costs excluding depreciation and amortization 5,230 EBITDA $ 1020 Depreciation and amortization 220 EBIT $ 800 Interest 180 EOT $ 620 Taxes (40%) 248 Net income $ 372 Common dividends paid $ 146 Earnings per share $ 372 a. Construct the statement of stockholder’s equity for December 31, 2018. No common stock was issued during 2018. 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?

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Fundamentals of Financial Manageme...

15th Edition
Eugene F. Brigham + 1 other
Publisher: Cengage Learning
ISBN: 9781337395250
BuyFind

Fundamentals of Financial Manageme...

15th Edition
Eugene F. Brigham + 1 other
Publisher: Cengage Learning
ISBN: 9781337395250

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Chapter
Section
Chapter 3, Problem 16P
Textbook Problem

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

Chapter 3, Problem 16P, FINANCIAL STATEMENTS The Davidson Corporation's balance sheet and income statement are provided

Davidson Corporation: Income Statement for Year Ending December 31, 2018 (Millions of Dollars)

Sales $ 6250
Operating costs excluding depreciation and amortization 5,230
EBITDA $ 1020
Depreciation and amortization 220
EBIT $ 800
Interest 180
EOT $ 620
Taxes (40%) 248
Net income $ 372
Common dividends paid $ 146
Earnings per share $ 372
  1. a. Construct the statement of stockholder’s equity for December 31, 2018. No common stock was issued during 2018.
  2. b. How much money has been reinvested in the firm over the years?
  3. c. At the present time, how large a check could be written without it bouncing?
  4. d. How much money must be paid to current creditors within the next year?

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