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3 December, 17:54

The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed $560,000 in the common stock account and $5.6 million in the additional paid-in surplus account. The 2015 balance sheet showed $600,000 and $6 million in the same two accounts, respectively. If the company paid out $510,000 in cash dividends during 2015, what was the cash flow to stockholders for the year?

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  1. 3 December, 19:12
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    what was the cash flow to stockholders for the year?

    $70000

    Explanation:

    Cash flow to stockholders = dividends received - change in common stock account - change in paid-in capital

    = 510,000 - (600,000-560,000) - (6,000,000-5,600,000)

    =70000 This represents the net cash flow to stockholders.

    This represents the net cash flow to stockholders.
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