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

A small stock dividend was declared and issued in 2010. The market value of the shares was $10,500. Cash dividends were $20,000 in both 2010 and 2009. The common stock has no par or stated value.
Instructions
(a) What was the amount of net income reported by Espy Corp. in 2010?
(b) Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2010.
(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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2010 Common stock, 10,500 and 10,000 shares, respectively, for 2010 and 2009 Preferred stock, 5,000 shares Retained carnings $165,000 $140,000 125,000 270,000 125,000 300,000