The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below: 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.

Question

The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below:  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.

Quizplus · Accepted Answer

The Answer of The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below:  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.

The Ending and Beginning Balances of Farmer Corporation's Balance Sheet