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

2014 2013 Common stock, 10,500 and 10,000 shares, respectively, for 2014 and 2013 $160,800 $140,000 Preferred stock, 5,000 shares 125,000 125,000 Retained earnings 300,000 270,000 A small stock dividend was declared and issued in 2014. The market price of the shares was $8,800. Cash dividends were $20,000 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 Smoltz 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.

AppendixLO1