Income StatementFY
2
3
FY
2
4
Sales
1
1
,
0
4
3
,
0
0
0
,
0
0
0
1
2
,
2
4
7
,
0
0
0
,
0
0
0
Cost of Goods Sold
4
,
9
7
0
,
0
0
0
,
0
0
0
5
,
5
1
2
,
0
0
0
,
0
0
0
Other Expenses
4
,
4
1
8
,
0
0
0
,
0

Question

Income StatementFY
2
3
FY
2
4
Sales
1
1
,
0
4
3
,
0
0
0
,
0
0
0
1
2
,
2
4
7
,
0
0
0
,
0
0
0
Cost of Goods Sold
4
,
9
7
0
,
0
0
0
,
0
0
0
5
,
5
1
2
,
0
0
0
,
0
0
0
Other Expenses
4
,
4
1
8
,
0
0
0
,
0
0
0
4
,
9
0
0
,
0
0
0
,
0
0
0
Depreciation
8
8
4
,
0
0
0
,
0
0
0
9
8
1
,
0
0
0
,
0
0
0
Earnings Before Int. & Tax
7
7
1
,
0
0
0
,
0
0
0
8
5
4
,
0
0
0
,
0
0
0
Interest Expense
4
4
2
,
0
0
0
,
0
0
0
4
9
1
,
0
0
0
,
0
0
0
Taxable Income
3
2
9
,
0
0
0
,
0
0
0
3
6
3
,
0
0
0
,
0
0
0
Taxes 
(
2
5
%
)
8
2
,
2
5
0
,
0
0
0
9
0
,
7
5
0
,
0
0
0
Net Income
2
4
6
,
7
5
0
,
0
0
0
2
7
2
,
2
5
0
,
0
0
0
Dividends
0
0
Add. to Retained Earnings
2
4
6
,
7
5
0
,
0
0
0
2
7
2
,
2
5
0
,
0
0
0
 ﻿Balance SheetFY
2
3
FY
2
4
FY
2
3
FY
2
4
Current AssetsCurrent LiabilitiesCash
2
0
2
,
0
0
0
,
0
0
0
3
1
0
,
9
0
0
,
0
0
0
Accounts Payable
6
0
3
,
0
0
0
,
0
0
0
5
4
4
,
0
0
0
,
0
0
0
Accounts Receivable
4
1
5
,
0
0
0
,
0
0
0
5
2
3
,
9
0
0
,
0
0
0
Notes Payable
3
5
4
,
0
0
0
,
0
0
0
3
9
3
,
0
0
0
,
0
0
0
Inventory
3
2
,
0
0
0
,
0
0
0
8
6
,
4
5
0
,
0
0
0
Total Current Liabilities
9
5
7
,
0
0
0
,
0
0
0
9
3
7
,
0
0
0
,
0
0
0
Total Current Assets
6
4
9
,
0
0
0
,
0
0
0
9
2
1
,
2
5
0
,
0
0
0
Long
-
Term Debt
1
5
,
2
1
1
,
0

VIPSolutions · Accepted Answer

To **calculate the cash flow to stockholders** (also called **cash flow to equity holders**), you typically use the following formula:

$$
\text{Cash Flow to Stockholders} = \text{Dividends Paid} - (\text{Net New Equity Raised})
$$

Where:
- **Dividends Paid** is from the income statement.
- **Net New Equity Raised** = Ending Common Stock – Beginning Common Stock

Let’s find these values using your data:

---

### **Step 1: Find Dividends Paid**
From your Income Statement for both years:
- Dividends = **0** for both FY23 and FY24.

---

### **Step 2: Find Net New Equity Raised**
$$
\text{Net New Equity Raised} = \text{Common Stock}_{\text{FY24}} - \text{Common Stock}_{\text{FY23}}
$$

- **Common Stock FY24:** 2,508,500  
- **Common Stock FY23:** 2,000,000

$$
\text{Net New Equity Raised} = 2,508,500 - 2,000,000 = 508,500
$$

---

### **Step 3: Apply the Formula**
$$
\text{Cash Flow to Stockholders} = \text{Dividends Paid} - \text{Net New Equity Raised}
$$
$$
\text{Cash Flow to Stockholders} = 0 - 508,500 = \boxed{-508,500}
$$

---

## **Final Answer:**

### **Cash Flow to Stockholders for FY24 = $-\$508,500$**

> **Interpretation:**  
A negative cash flow to stockholders means the company raised $508,500 by issuing new stock and paid no dividends. Stockholders, as a group, contributed this amount to the firm during FY24.

✨ VIPSolutions

Question:

Final Answer:

📢 Instructions:

Study Help, Fast Answers

✨ VIPSolutions

Question:

Final Answer:

📢 Instructions:

Related Answers

Study Help, Fast Answers