MC algo 2-48 Cash Flow To Stockholders Mully's Muffins had net income of $2,535. The firm...

Question

Question

MC algo 2-48 Cash Flow To Stockholders Mullys Muffins had net income of $2,535. The firm retains 70 percent of net income. D

business accounting

Answer 1

Answer #1

Net income = $2,535

Firm retains 70% of net income .

It means, dividend paid is 30% of net income .

Dividend paid = Net income x 30%

= 2,535 x 30%

= $761

Cash flow to shareholders = Dividend paid - Common stock issued

= 761 - 475

= $286

Correct option is second

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Answer 2

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