Question

The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $3.3 million, and the 2018 balance sheet showed long-term debt of $3.6 million. The 2018 income statement showed an interest expense of $110,000.

What was the firm’s cash flow to creditors during 2018? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed $580,000 in the common stock account and $3.5 million in the additional paid-in surplus account. The 2018 balance sheet showed $620,000 and $3.9 million in the same two accounts, respectively.

If the company paid out $520,000 in cash dividends during 2018, what was the cash flow to stockholders for the year? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Answer 1