Refer to all of the facts in Problem 11-1.

Required
Indicate how each transaction affects the cash flow of Peeler Company by preparing the Financing Activities section of the 2014 statement of cash flows. Provide an explanation for the exclusion of any of these transactions from the Financing Activities section of the statement.

Data From Problem 11.1

Peeler Company was incorporated as a new business on January 1, 2014. The corporate charter approved on that date authorized the issuance of 1,000 shares of $100 par, 7% cumulative, nonparticipating preferred stock and 10,000 shares of $5 par common stock. On January 10, Peeler issued for cash 500 shares of preferred stock at $120 per share and 4,000 shares of common stock at $80 per share. On January 20, it issued 1,000 shares of common stock to acquire a building site at a time when the stock was selling for $70 per share.

During 2014, Peeler established an employee benefit plan and acquired 500 shares of common stock at $60 per share as treasury stock for that purpose. Later in 2014, it resold 100 shares of the stock at $65 per share.

On December 31, 2014, Peeler determined its net income for the year to be $40,000. The firm declared the annual cash dividend to preferred stockholders and a cash dividend of $5 per share to the common stockholders. The dividends will be paid in 2015.

Required
Develop the Stockholders’ Equity category of Peeler’s balance sheet as of December 31, 2014. Indicate on the statement the number of shares authorized, issued, and outstanding for both preferred and common stock.