The following account balances relate to the stockholders equity accounts of Kerbs Corp. at year-end. A small

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

A small stock dividend was declared and issued in 2014. The market value of the shares was $10,500. Cash dividends were $15,000 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 Kerbs 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 cashflows.

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2014 2013 Common stock, 10,500 and 10,000 shares, respectively, for 2014 and 2013 Preferred stock, 5,000 shares Retained earnings $170,000 125,000 300,000 $140,000 125,000 250,000