객관식
Company B reported the following for the year: Gross Sales of \$500,000, Sales Returns and Allowances of \$20,000, and Sales Discounts of \$10,000. If total expenses for the year were \$300,000, what is the net income for Company B?
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4. Merchandising Operations
Net Sales
Multiple Choice
Which of the following best represents the formula for cash flow to stockholders?
A
Operating cash flow minus capital expenditures
B
Net sales minus cost of goods sold
C
Dividends paid minus net new equity raised
D
Net income plus depreciation
검증된 단계별 안내1
Understand the concept of cash flow to stockholders: It represents the amount of cash distributed to shareholders after accounting for any new equity raised during the period.
Identify the components of the formula: Dividends paid represent the cash distributed to shareholders, while net new equity raised refers to the cash inflow from issuing new shares.
Formulate the equation: Cash flow to stockholders = Dividends paid - Net new equity raised.
Clarify why other options are incorrect: Operating cash flow minus capital expenditures relates to cash flow from assets, net sales minus cost of goods sold relates to gross profit, and net income plus depreciation relates to cash flow from operations.
Apply the formula in practice: To calculate cash flow to stockholders, gather data on dividends paid and net new equity raised from the financial statements, then subtract net new equity raised from dividends paid.
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