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?

Question

Business

Douglas Mcmahon

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?

+4

Answers (1)

Know the Answer?

Shyanne Wheeler · Answer 1

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.