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P13-2A Chipo Corp

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P13-2A The following account balances relate to the stockholders’ equity accounts of
Chipo Corp. at year-end.

  2014 2013
Common stock, 10,500 and 10,000 shares, 
respectively, for 2014 and 2013   155,000  130,000
Preferred stock, 5,000 shares   125,000  125,000
Retained earnings   300,000  250,000

A small stock dividend was declared and issued in 2014. The market value of the shares
was $11,200. Cash dividends were $16,000 in both 2014 and 2013. The common stock has
no par or stated value.

Instructions
(a) What was the amount of net income reported by Chipo Corp. in 2014?
(b) Determine the amounts of any cash inflows or outflows related to the common stock
and dividend accounts in 2014.
(c) Indicate where each of the cash inflows or outflows identified in (b) would be classified
on the statement of cash flows.

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