The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed $540,000 in the common stock account and $3.4 million in the additional paid-in surplus account. The 2018 balance sheet showed $580,000 and $3.8 million in the same two accounts, respectively. If the company paid out $500,000 in cash dividends during 2018, what was the cash flow to stockholders for the year?
The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed $540,000 in the common stock account and $3.4 million in the additional paid-in surplus account. The 2018 balance sheet showed $580,000 and $3.8 million in the same two accounts, respectively. If the company paid out $500,000 in cash dividends during 2018, what was the cash flow to stockholders for the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
![The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed $540,000 in the common
stock account and $3.4 million in the additional paid-in surplus account. The 2018 balance
sheet showed $580,000 and $3.8 million in the same two accounts, respectively. If the
company paid out $500,000 in cash dividends during 2018, what was the cash flow to
stockholders for the year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F12044b99-8880-4034-acf6-25b7dc1f2f10%2Fa2d61122-223f-473c-931b-11793fd21678%2Flxwvlsa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed $540,000 in the common
stock account and $3.4 million in the additional paid-in surplus account. The 2018 balance
sheet showed $580,000 and $3.8 million in the same two accounts, respectively. If the
company paid out $500,000 in cash dividends during 2018, what was the cash flow to
stockholders for the year?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education