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The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed $580,000 in the

ID: 2383008 • Letter: T

Question

The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed $580,000 in the common stock account and $3.5 million in the additional paid-in surplus account. The 2015 balance sheet showed $620,000 and $3.9 million in the same two accounts, respectively.

If the company paid out $520,000 in cash dividends during 2015, what was the cash flow to stockholders for the year

The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed $580,000 in the common stock account and $3.5 million in the additional paid-in surplus account. The 2015 balance sheet showed $620,000 and $3.9 million in the same two accounts, respectively.

Explanation / Answer

Particulars 2014 2015 Difference or cash raised Common Stock               580,000.00                                  620,000.00                                  40,000.00 Additional paid in Surplus           3,500,000.00                              3,900,000.00                                400,000.00 Total Cash Raised from S/H                                440,000.00 Cash Dividends Paid to S/H                                520,000.00 Net cash paid to S/H(520,000-440,000)                                  80,000.00