For the Year,Peggy Grey's Cookies Had Net Income of $8,110

question 39

Multiple Choice

For the year,Peggy Grey's Cookies had net income of $8,110.The firm paid out 30 percent of the net income to its shareholders as dividends and also paid $210 in interest.During the year,the company repurchased $500 worth of common stock and borrowed $250.What is the cash flow to stockholders?

• A)$2,933
• B)$1,893
• C)$1,933
• D)$2,433
• E)$2,893

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Definitions:

Throughput Time

The amount of time it takes for a product to pass through a production process, from start to finish, including processing, inspection, and transit times.

Desirable

Something that is wanted or wished for because it is considered attractive, satisfying, or beneficial.

Operating Asset

Assets used in the day-to-day operations of a business to generate revenue, such as machinery, buildings, and equipment.

Plant Expansion

Plant expansion refers to the process of enlarging the capacity or physical size of a manufacturing facility to increase production capabilities, accommodate new machinery, or improve efficiency.