Question

At the beginning of the year, Vendors, Inc., had owners' equity of $49,265. During the year, net income was $5,625 and the company paid dividends of $3,965. The company also repurchased $7,915 in equity. What was the cash flow to stockholders for the year?

Answer 1

the Cash flow to Stockholders is $11,880

Step-by-step explanation:

The computation of the cash flow to the stockholder for the year is given below:

Cash flow to Stockholders is

= Dividends Paid - (Ending Common Stock - Beginning Common Stock)

= $3,965 - (($49,265 - $7,915) - $49,265)

= $3,965 - ($41,350 - $49,265)

= $3,965 + $7,915

= $11,880

Hence, the Cash flow to Stockholders is $11,880