At the beginning of the year, the balance sheet of The Outlet showed $8 in the common stock account and $138 in the additional paid-in surplus account. The end- of-year balance sheet showed $20 and $232 in the same two accounts, respectively. The company paid out $48 in cash dividends during the year. What is the cash flow to stockholders for the year? Use a negative sign if the cash flow to stockholders was negative. Do not use the $ sign in your answer.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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At the beginning of the year, the balance sheet of The Outlet showed $8 in the
common stock account and $138 in the additional paid-in surplus account. The end-
of-year balance sheet showed $20 and $232 in the same two accounts, respectively.
The company paid out $48 in cash dividends during the year. What is the cash flow
to stockholders for the year? Use a negative sign if the cash flow to stockholders
was negative. Do not use the $ sign in your answer.
Your Answer:
Transcribed Image Text:At the beginning of the year, the balance sheet of The Outlet showed $8 in the common stock account and $138 in the additional paid-in surplus account. The end- of-year balance sheet showed $20 and $232 in the same two accounts, respectively. The company paid out $48 in cash dividends during the year. What is the cash flow to stockholders for the year? Use a negative sign if the cash flow to stockholders was negative. Do not use the $ sign in your answer. Your Answer:
Expert Solution
Step 1

Cash flow to stockholder includes the following

  • Money received on account of shares issued
  • Dividend paid to stockholder
  • Money paid on account of redemption of shares
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