P172A Solution Answer a Retained Earnings Beg Bal 25000000 S

P17-2A

Solution

Answer a. Retained Earnings Beg. Bal.    250,000.00 Stock Dividend    10,500.00      75,500.00 Net Income (Bal. Fig.) Cash Dividends    15,000.00 End. Bal.    300,000.00 Net Income in 2017 = $75,500 Answer b. Cash Inflow from Issue of Common Stock = $170,000 - $140,000 - $10,500 Cash Inflow from Issue of Common Stock = $19,500 Cash Outflow for Cash Dividends = $15,000 Answer c. Cash Inflow - Financing Activities on the Statement Cash Ouflow - Financing Activities on the Statement