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The 2008 balance sheet of Maria\'s Tennis Shop, Inc., showed $830,000 in the com

ID: 2659497 • Letter: T

Question

The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $830,000 in the common stock account and $6.2 million in the additional paid-in surplus account. The 2009 balance sheet showed $795,000 and $7.95 million in the same two accounts, respectively. If the company paid out $690,000 in cash dividends during 2009, What was the cash flow to stockholders for the year?


rev: 09_17_2012

The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $830,000 in the common stock account and $6.2 million in the additional paid-in surplus account. The 2009 balance sheet showed $795,000 and $7.95 million in the same two accounts, respectively. If the company paid out $690,000 in cash dividends during 2009, What was the cash flow to stockholders for the year?

Explanation / Answer




cash flow to stockholders = dividend paid - net new equity =

=690,000 -(795,000+7950000-830,000-6200000)=-1025000


$-1,025,000