1 answer

Last option is 1,919 Muffy's Muffins had net income of $2,570. The firm retains 55 percent...

Question:

Muffys Muffins had net income of $2,570. The firm retains 55 percent of net income. During the year, the company solod $505 in common stock. What was the cash flow to shareholders? Multiple Choice $1,157 $909 $1,662 $652

last option is 1,919

Muffy's Muffins had net income of $2,570. The firm retains 55 percent of net income. During the year, the company solod $505 in common stock. What was the cash flow to shareholders? Multiple Choice $1,157 $909 $1,662 $652

Answers


Cash flow to shareholder’s = Net Income x (1-Retained earnings) - Sold in common stock

Cash flow to shareholder’s = $2570 x (1-55%) - $505

Cash flow to shareholder’s = $652

Correct option is > $652

.

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