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

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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

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Answer 1

Answer #1

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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Answer 2

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

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

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