Question
Please answer the questions below: A)The 2008 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $2.7 million, and the 2009 balance sheet
Please answer the questions below:
A)The 2008 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $2.7 million, and the 2009 balance sheet showed long-term debt of $3.7 million. The 2009 income statement showed an interest expense of $270,000. What was the firm's cash flow to creditors during 2009?
B) The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $880,000 in the common stock account and $6.9 million in the additional paid-in surplus account. The 2009 balance sheet showed $925,000 and $8.3 million in the same two accounts, respectively. If the company paid out $670,000 in cash dividends during 2009, What was the cash flow to stockholders for the year?
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