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The 2017 balance sheet of Kerbers Tennis Shop, Inc., showed $920,000 in the common stock account and $6.1 million in the additional paid-in surplus account.

The 2017 balance sheet of Kerbers Tennis Shop, Inc., showed $920,000 in the common stock account and $6.1 million in the additional paid-in surplus account. The 2018 balance sheet showed $965,000 and $8.6 million in the same two accounts, respectively. If the company paid out $640,000 in cash dividends during 2018, what was the cash flow to stockholders for the year?

Multiple Choice

  • $8,925,000

  • $325,000

  • $-1,905,000

  • $1,905,000

  • $280,000

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