Question

The balance sheets for Pear Corp. indicated $8,640 in Common Stock and Paid-In Capital as of 12/31/10 and $9,336 in those accounts as of 12/31/11. During 2011, Pear paid $555 in dividends to shareholders. The firm's Cash Flow to Stockholders during 2011 was $___________.

Answer 1

the net cash flow will be negative for the amount of $141 this means the stockholders contributed to the firm with cash rather than the firm providing cash for them.

Step-by-step explanation:

cash inflow:

555 cash idividends

cash outflow:

9,336 ending capitalization - 8,640 beginning capitalization = 696

the stockholder purchases shares for that amount.

net: -141