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

Question

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

Davidson Corporation: Balance Sheet as of December 31, 2015 (Millions of Dollars)

Davidson Corporation: Income Statement for Year Ending December 31, 2015 (Millions of Dollars)

Construct the statement of stockholders' equity for December 31, 2015. No common stock was issued during 2015. 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.

Assets Liabilities and Equity Cash and equivalents $15    Accounts payable $120 Accounts receivable 515    Notes payable 280 Inventories 880    Accruals 220   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

Explanation / Answer

STOCKHOLDER'S EQUITY

DETAILS AMOUNT AMOUNT COMMON STOCK AT DECEMBER 31 ,2015 $260000000 RETAINNED EARNNINGS $1600000000 ADD NET INCOME $372000000 LESS DIVIDEND PAID ($146000000) BALANCE RETAINNED EARNNINGS $1826000000 TOTAL COMMON EQUITY BALANCE $2086000000

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