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

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The following account balances relate to the stockholders€™ equity accounts of Chipo Corp. at year-end.

The following account balances relate to the stockholders€™ equity accounts 108276

A small stock dividend was declared and issued in 2014. The market value of the shares was $11,200. Cash dividends were $16,000 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 Chipo 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.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Managerial Accounting Tools for business decision making

ISBN: 978-1118096895

6th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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