Marla's Homemade Cookies has net income of $1,280. During the year, the company sold $50 worth of common stock and paid dividends of $40. What is the amount of the cash ﬂow to
Stockholders?

Question

Quizplus · Accepted Answer

The cash flow to stockholders is calculated as dividends paid minus the net amount from stock transactions. Here, dividends paid are $40, and the company received $50 from selling stock, resulting in a net cash flow to stockholders of $40 - $50 = -$10.

Marla's Homemade Cookies Has Net Income of $1,280