Problem:
The 2010 balance sheet of Maria's Tennis Shop, Inc., showed $630,000 in the common stock account and $4.9 million in the additional paid-in surplus account. The 2011 balance sheet showed $670,000 and $5.4 million in the same two accounts, respectively.
Required:
Question: If the company paid out $620,000 in cash dividends during 2011, what was the cash flow to stockholders for the year?
Note: Please provide reasons to support your answer.