At the end of January 2022 Peggy Grey's Cookies has net income of $410. On February 1st, the firm pays out 37 percent of the net income to its shareholders as dividends. A day later the company sold $86 worth of new common stock. What is the net cash flow to the stockholders of February 1st?

At the end of January 2022 Peggy Grey's Cookies has net income of $410. On February 1st, the firm pays out 37 percent of the net income to its shareholders as dividends. A day later the company sold $86 worth of new common stock. What is the net cash flow to the stockholders of February 1st?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 22EB: Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000...

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Concept explainers

Operating Cash Flows

A cash flow statement (CFS) helps the company to know the amount of cash at its disposal, the activities that lead to earning cash, and the activities which require cash expenditure for a particular period. The statement represents the liquidity of the company.

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At the end of January 2022 Peggy Grey's Cookies has net income of $410. On
February 1st, the firm pays out 37 percent of the net income to its shareholders as
dividends. A day later the company sold $86 worth of new common stock. What is
the net cash flow to the stockholders of February 1st?

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