The following information relates to the Zhang Corporation (in thousands):
$\begin{array}{llr}
\text { Sales revenue } &\$90\
\text { Net assets, end of year } &70\
\text { Net income, capital maintenance method } &25\
\text { Additional investment by stockholders } &15\
\text {Net assets beginining of year } &35\
\end{array}$
Required:
Compute the amount of dividends paid during the year, using the financial capital maintenance approach.

Question

The following information relates to the Zhang Corporation (in thousands):
 $\begin{array}{llr}
  \text { Sales revenue } &\$90\
 \text { Net assets, end of year } &70\
 \text { Net income, capital maintenance method } &25\
 \text { Additional investment by stockholders } &15\
 \text {Net assets beginining of year  } &35\
\end{array}$
 Required:
Compute the amount of dividends paid during the year, using the financial capital maintenance approach.

Quizplus · Accepted Answer

The Answer of The following information relates to the Zhang Corporation (in thousands):
 $\begin{array}{llr}
  \text { Sales revenue } &\$90\
 \text { Net assets, end of year } &70\
 \text { Net income, capital maintenance method } &25\
 \text { Additional investment by stockholders } &15\
 \text {Net assets beginining of year  } &35\
\end{array}$
 Required:
Compute the amount of dividends paid during the year, using the financial capital maintenance approach.

The Following Information Relates to the Zhang Corporation (In Thousands)