The following account balances relate to the stockholders’ equity accounts of Gore Corp. at year-end.

2007 2006 Common stock, 10,500 and 10,000 shares, respectively, for 2007 and 2006 $160,000 $140,000 Preferred stock, 5,000 shares 125,000 125,000 Retained earnings 300,000 260,000 A small stock dividend was declared and issued in 2007. The market value of the shares was $10,500. Cash dividends were $15,000 in both 2007 and 2006. The common stock has no par or stated value.

Instructions

(a)

(b)

(c)

What was the amount of net income reported by Gore Corp. in 2007?

Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2007.

Indicate where each of the cash inflows or outflows identified in

(b) would be classified on the statement of cash flows.