Question

The December 31, 2015, balance sheet of Schism, Inc., showed $154,000 in the common stock account and $2,790,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed $164,000 and $3,090,000 in the same two accounts, respectively. The company paid out $159,000 in cash dividends during 2016.What was the cash flow to stockholders for the year? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Answer 1

Answer: -$151,000

Step-by-step explanation:

Cash flow to stockholders for the year 2016:

= Dividend paid in 2016 - (common stock account in 2016 + surplus account in 2016 - common stock account in 2015 - surplus account in 2015)

= $159,000 - ($164,000 + $3,090,000 - $154,000 - $2,790,000)

= $159,000 - $310,000

= -$151,000

Therefore, the cash flow to stockholders for the year is (-$151,000).