Question
1) The 2017 balance sheet of Kerbers Tennis Shop, Inc., showed $920,000 in the common stock account and $6.7 million in the additional paid-in surplus
1) The 2017 balance sheet of Kerbers Tennis Shop, Inc., showed $920,000 in the common stock account and $6.7 million in the additional paid-in surplus account. The 2018 balance sheet showed $865,000 and $7.8 million in the same two accounts, respectively. If the company paid out $530,000 in cash dividends during 2018, what was the cash flow to stockholders for the year?
2)The 2017 balance sheet of Kerbers Tennis Shop, Inc., showed long-term debt of $2.25 million, and the 2018 balance sheet showed long-term debt of $3.6 million. The 2018 income statement showed an interest expense of $380,000. What was the firm's cash flow to creditors during 2018?
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