The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed $550,000 in the common stock account and $4.7 million in the additional paid-in sur + account. The 2015 balance sheet showed $590,000 and $5.1 million in the same two accounts, respectively. If the company paid out $505,000 in cash dividends during 2015, what was the cash flow to stockholders for the year? (Enter your answer in dollars, not millions of dollars, e. g., 1,234,567.)

Question

Romeo Weaver

Business

16 November, 15:24

The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed $550,000 in the common stock account and $4.7 million in the additional paid-in sur + account. The 2015 balance sheet showed $590,000 and $5.1 million in the same two accounts, respectively. If the company paid out $505,000 in cash dividends during 2015, what was the cash flow to stockholders for the year? (Enter your answer in dollars, not millions of dollars, e. g., 1,234,567.)

+3

Answers (1)

Know the Answer?

Melissa Miller · Answer 1

cash flow to stockholders = 65,000

Explanation:

2014

550,000 CS

4,700,000 Additional Paid-In

5,250,000 Total beginning Capital

2015

590,000 CS

5,100,000 Additional Paid-IN

5,690,000 Total ending Capital

Dividends - (Ending Capital - Beginning Capital) = cash low to stockholders

505,000 - (5,690,000 - 5,250,000) = 65,000