The ending and beginning balances of Farmer's Corporation's balance sheet accounts for the most recent year are limited below:
2) The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below: Ending Beginning Assets & Contra-Assets: Balance Balance Cash and cash equivalents.. Accounts receivable. $40,000 $28,000 $17,000 $14,000 Inventory $60,000 $62,000 Property, plant, and equipment.. $406,000 Accumulated depreciation $383,000 $234,000 $205,000 Liabilities and Stockholders' Equity: Accounts payable $15,000 $12,000 Accrued liabilities $35,000 $38,000 Income taxes payable. $49,000 $42,000 Bonds payable.. $110,000 $109,000 Common stock $39,000 $36,000 Retained earnings. $41,000 $45,000 The company's net income (loss) for the year was $0 and its cash dividends were $4,000. It did not dispose of any property, plant, and equipment, retire any bonds payable, or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account in the below table. Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows. For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income. For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow. The first entry has been filled in as an example. Ending Beginning Add or Balance Balance Change Subtract Section Subtract 17,000 14,000 +3,000 Operating Accounts receivable. 60,000 62.000 Inventory. 406,000 383,000 Property, plant, and equipment.... 234,000 205,000 Accumulated depreciation 15,000 12,000 Accounts payable 35,000 38,000 Accrued liabilities. 49,000 42,000 Income taxes payable........ 110,000 109,000 Bonds payable. 39,000 36,000 Common stock 3 2) The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below: Ending Beginning Assets & Contra-Assets: Balance Balance Cash and cash equivalents.. Accounts receivable. $40,000 $28,000 $17,000 $14,000 Inventory $60,000 $62,000 Property, plant, and equipment.. $406,000 Accumulated depreciation $383,000 $234,000 $205,000 Liabilities and Stockholders' Equity: Accounts payable $15,000 $12,000 Accrued liabilities $35,000 $38,000 Income taxes payable. $49,000 $42,000 Bonds payable.. $110,000 $109,000 Common stock $39,000 $36,000 Retained earnings. $41,000 $45,000 The company's net income (loss) for the year was $0 and its cash dividends were $4,000. It did not dispose of any property, plant, and equipment, retire any bonds payable, or repurchase any of its own common stock during the year. Required: Compute the change in each balance sheet account in the below table. Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows. For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income. For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow. The first entry has been filled in as an example. Ending Beginning Add or Balance Balance Change Subtract Section Subtract 17,000 14,000 +3,000 Operating Accounts receivable. 60,000 62.000 Inventory. 406,000 383,000 Property, plant, and equipment.... 234,000 205,000 Accumulated depreciation 15,000 12,000 Accounts payable 35,000 38,000 Accrued liabilities. 49,000 42,000 Income taxes payable........ 110,000 109,000 Bonds payable. 39,000 36,000 Common stock 3
