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

A small stock dividend was declared and issued in 2022. The market price of the shares was $8,800. Cash dividends were $20,000 in both 2022 and 2021. The common stock has no par or stated value. 

Instructions 

a. What was the amount of net income reported by Molder Corp. in 2022?

b. Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2022. 

c. Indicate where each of the cash inflows or outflows identified in (b) would be classified on the statement of cash flows.

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2022 2021 Common stock, 10,500 and 10,000 shares, respectively, for 2022 and 2021 Preferred stock, 5,000 shares Retained earnings $160,800 $140,000 125,000 300,000 270,000