The 2008 balance sheet of Maria\'s Tennis Shop, Inc., showed $810,000 in the com
ID: 2816066 • Letter: T
Question
The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $810,000 in the common stock account and $6.6 million in the additional paid-in surplus account. The 2009 balance sheet showed $885,000 and $7.9 million in the same two accounts, respectively. If the company paid out $680,000 in cash dividends during 2009, What was the cash flow to stockholders for the year?
rev: 09_17_2012
$130,000
$8,105,000
$-695,000
$695,000
The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $810,000 in the common stock account and $6.6 million in the additional paid-in surplus account. The 2009 balance sheet showed $885,000 and $7.9 million in the same two accounts, respectively. If the company paid out $680,000 in cash dividends during 2009, What was the cash flow to stockholders for the year?
Explanation / Answer
Cash flow to stockholders is the amount of cash that a company pays out to its shareholders.
Cash flow to stockholders = Dividends - (Ending common stock and additional paid-in surplus - Begining common stock and additional paid-in surplus )
= 680,000 - ((885,000+7,900,000)-(810,000+6,600,000)
= 680,000-(8,785,000 - 7,410,000)
= 680,000 - 1375,000
=-695,000
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