Answer:
$23.6 per share
Explanation:
Given that,
Total common equity = $5,500,000
Shares outstanding = 250,000
Net income = $525,000
Dividends paid out = $125,000
Total value at the end:
= Total common equity + Net income - Dividends paid out
= $5,500,000 + $525,000 - $125,000
= $5,900,000
Therefore,
Book value per share at 2014 year end:
= Total value at the end ÷ No. of shares outstanding
= $5,900,000 ÷ 250,000
= $23.6 per share
The level of demand that represents a real intention to purchase by people with the means to pay
Answer: debit to Dividends Payable.
Explanation:
When the dividend was declared in July 15, the dividend amount was debited to the Retained earnings to show that it was being taken from Retained earnings. It was then credited to Dividends payable to show that the company owed dividends to its shareholders.
On August 15, this liability will be paid off when the dividends are paid and so the Dividends Payable account will be debited to reflect this.
Answer:
The deficit increases from $200 to $300.
Explanation:
Current Account Balance before:
$2000 - $1300 - $900 = -$200.
Previously, the government had a current account deficit of $200.
Now,
$2000 - $1500 - $800 = -$300.
The government has a current account deficit of $300.
The current account deficit will increase by $100 to $300.
Answer:
2500 phones produced at $250 per phone
Max weekly revenue would be $625,000.
Explanation:
p = 500 - 0.1x
p is the price per unit
revenue = quantity * price/unit
R(x) = revenue = p(x)*x = 500x - 0.1x²
p(x) maximum when first derivative is set to 0
500 - 0.2x = 0 ==> x = 500/0.2 = 2500 quantities
price/unit : p = 500 - 0.1*2500 = 500 - 250 = 250
revenue :
r(2500) = 500*2500 - 0.1*2500²
r(2500) = 2500(500 - 250) = 625000
The company should produce 2500 phones each week at a price of $250
The maximum weekly revenue is $625000
