The following account balances relate to the stockholders equity accounts of Chipo Corp. at year-end.
| 2012 | 2011 | |||
| Common stock, 10,500 and 10,000 shares, | ||||
| respectively, for 2012 and 2011 | $168,660 | $143,120 | ||
| Preferred stock, 5,000 shares | 133,000 | 133,000 | ||
| Retained earnings | 303,410 | 257,000 |
A small stock dividend was declared and issued in 2012. The market value of the shares was $10,560. Cash dividends were $14,370 in both 2012 and 2011. The common stock has no par or stated value.
(a) What was the amount of net income reported by Chipo Corp. in 2012?
| Net income | $ |
(b) Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2012. Indicate where each of the cash inflows or outflows identified in would be classified on the statement of cash flows.
| Common stock | $ | InflowOutflow | FinancingInvestingOperating | |||
| Dividends | $ | InflowOutflow | InvestingOperatingFinancing |