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 2025. The market price of the shares issued was \(\$ 8,800\). Cash dividends of \(\$ 20,000\) were declared and paid in both 2025 and 2024 . The common stock and preferred stock have no par or stated value.

Instructions

a. What was the amount of net income reported by Molder Corp. in 2025?

b. Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2025.

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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Common stock, 10,500 and 10,000 shares, issued and outstanding, respectively, for 2025 and 2024 Preferred stock, 5,000 shares, issued and outstanding Retained earnings 2025 $160,800 125,000 300,000 2024 $140,000 125,000 270,000