Problem:
The 2010 balance sheet of marias tennis inc, showed 680,000 in the common stock account and 4.3 million in the additional paid-in surplus account. The 2011 balance sheet showed 715,000 and 4.7 million in the same two accounts, respecitively.
Required:
Question: If the company paid out 540,000 in cash dividends during 2011, what was the cash flow to stockholders for the year?
Note: Provide support for your underlying principle.