The balance sheet of the Boyd Trucking Company (BTC) shows that BTC had sales for the year ended December 31, 2018, of $25 million. The firm follows a policy of paying all net earnings out to its common stockholders in cash dividends. Thus, BTC generates no funds from its earnings that can be used to expand its operations. (Assume that depreciation expense is just equal to the cost of replacing worn-out assets.)

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Boyd Trucking Company Balance Sheet, December 31, 2018 (S Millions) Current assets $10 Accounts payable $ 5 Net fixed assets 15 Notes payable 0 Total $25 Bonds payable 10 Common equity 10 Total $25