Capital Stock: 40,000 (2009)/ 40,000 (2008)
Retained Earnings: 43,447 (2009) / 36,149 (2008)

Kindly assist, how to deal with this entries in cash flow statement

Capital Stock on Cash flow statement goes under financing activities
Retained earnings goes on cash flow statement under

Rest Retained Earnings you don't put on CASH FLOW Statement. But Net Income or Net Loss Part you can put on Cash Flow Statement under Operating Activities only if you are using INDIRECT METHOD. You won't put if you are making DIRECT MEthod Operations cash flow statement.

Hope you find this help ful