1. The 2006 Balance sheet of Marias Tennis Shop Inc., showed $900,000 in the common stock account...


1. The 2006 Balance sheet of Maria’s Tennis Shop Inc., showed $900,000 in the common stock account and $6.45 million in the additional paid-in surplus account. The 2007 balance sheet showed $805,000 and $7.9 million in the same two accounts, respectively. The company paid out $690,000 in cash dividends during 2007. What was the cash flow to stockholders for the year?
2. What is the present value of $13,150 to be received 5 years from 5 years from today if the discount rate is 6.00 percent?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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