The December 31, 2015, balance sheet of Schism, Inc., showed $154,000 in the common stock account and $2,790,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed $164,000 and $3,090,000 in the same two accounts, respectively. The company paid out $159,000 in cash dividends during 2016. What was the cash flow to stockholders for the year? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e. g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32.)

Question

Rhett Ross

Business

22 December, 01:42

The December 31, 2015, balance sheet of Schism, Inc., showed $154,000 in the common stock account and $2,790,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed $164,000 and $3,090,000 in the same two accounts, respectively. The company paid out $159,000 in cash dividends during 2016. What was the cash flow to stockholders for the year? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e. g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32.)

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Answers (1)

Know the Answer?

Adonis Roach · Answer 1

Answer: - $151,000

Explanation:

Cash flow to stockholders for the year 2016:

= Dividend paid in 2016 - (common stock account in 2016 + surplus account in 2016 - common stock account in 2015 - surplus account in 2015)

= $159,000 - ($164,000 + $3,090,000 - $154,000 - $2,790,000)

= $159,000 - $310,000

= - $151,000

Therefore, the cash flow to stockholders for the year is (-$151,000).