Cash flow to owners.

The company paid interest expense of $17,000 for 2017 and had an overall tax rate of 40 % for 2017.

Find the cash flow to owners for 2017 by parts and total, with the parts being dividends paid and increases in borrowing from owners (change in common stock and paid-in-surplus).

3 parts needed:

Distributed Earnings (net income - change in retained earnings)

Net borrowing

Cash flow to owners (dividends - net new borrowing from owners)

Partial Income Statement Year Ending 2017 Sales revenue $350,000 |Cost of goods sold $141,800 Fixed costs $43,000 Selling, general, and administrative expenses $27,800 Depreciation $46,100 Partial Balance Sheet 12/31/2016 LIABILITIES ASSETS Cash $15,800 Notes payable $14,000 $28,100 Accounts payable Accounts receivable $18,900 Inventories $48,000 Long-term debt $368,100 OWNERS' EQUITY $140,400 Retained earnings $190,100 Fixed assets Accumulated depreciation $81,900 Common stock Intangible assets $131,900 Partial Balance Sheet 12/31/2017 ASSETS LIABILITIES Cash $26,200 Notes payable $12,200 $18,900 Accounts payable $53,200 Long-term debt Accounts receivable $23,800 $161,900 Inventories $448,000 OWNERS' EQUITY Fixed assets Retained earnings Accumulated depreciation $81,900 Common stock Intangible assets $181,900