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

question 56

Short Answer

The following information relates to the Zhang Corporation (in thousands):
 Sales revenue $90 Net assets, end of year 70 Net income, capital maintenance method 25 Additional investment by stockholders 15Net assets beginining of year 35\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.

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Definitions:

Natural Logarithm

The logarithm to the base e, where e is an irrational constant approximately equal to 2.718281.

Logarithm

The exponent to which a base, typically 10 or e, must be raised to produce a given number.

Properties of Logarithms

The set of rules that apply to logarithmic functions, including product, quotient, and power rules.

Logarithm

The exponent or power to which a base must be raised to produce a given number, commonly used in the operations of multiplication and division in a compressed form.

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