Answer:
The answer is: Yes, the student is right.
Explanation:
Some industries, especially agriculture, work on some unique ways due to their complexity. For instance, the government sets the price floor and the price ceiling for the main crops produced in the country. In order to do this, the government owns and manages huge warehouses and silos.
When the production of crops is higher than usual, the price of that crop will tend to drop because of excessive supply. The government then buys the crop to put a price floor and takes the overstock to its warehouses. That enables the government to control the market so that farmers get a "fair price" for their crops. If the government didn´t do anything, farmers would lose a lot of money and their customers (agricultural corporations) would probably overstock. That at the same time would cause further problems in the future due to lower future sales because the agricultural corporations companies are overstocked.
When farmers have a bad year due to drought or flooding, their production levels will fall, so the price of the crops would rise due to excessive demand. Then the government sells the crops it had stored previously in its warehouses to put a price ceiling. If the government didn´t do this then a lot of poor people would not be able to buy enough quantities of food.
Solution:
The cash dividend is cash or assets generally paid into the current income of the company to the shareholders. All dividends are to be declared by the executive board and whether the payment for the dividend should remain identical.
Ending Retained Earnings= Beginning Retained Earnings + Net Income - Dividends
( Beginning and Ending Retained Earnings are given in question )
$688,000 = $582,000 + $175,000 - Dividends
$688,000 = $757,000 - Dividends
Dividends = $757,000 - $688,000
Dividends = $69,000
Answer:
Debit : Dividends $50,000
Credit : Cash $50,000
Explanation:
Dividend calculation = 500,000 shares x $1 x 1/10 = $50,000
To record the dividend, the following entry is made :
Debit : Dividends $50,000
Credit : Cash $50,000
Answer:
The answer is avg cost curve
Explanation:
The long-term result of entry and exit in a perfectly competitive market is that all firms end up selling at the price level determined by the lowest point on the avg cost curve