The December 31, 2009, balance sheet of Schism, Inc., showed $148,000 in the com

Question

The December 31, 2009, balance sheet of Schism, Inc., showed $148,000 in the common stock account and $2.73 million in the additional paid-in surplus account. The December 31, 2010, balance sheet showed $158,000 and $3.03 million in the same two accounts, respectively. The company paid out $153,000 in cash dividends during 2010.

Required:

What was the cash flow to stockholders for the year? (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567))

Cash flow to stockholders $

Explanation / Answer

cash flow to stock holders = Dividends paid -net new equity

cash flow to stock holders =153,000-[(commonend + APISend)-(commonbeg+APISbeg)]

=153,000-[(158,000+3030,000)-(148,000+2730,000)]

=-$157,000

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