Question

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.)

Answer 1

Answer:

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