Question

The ending Retained Earnings balance of Lambert Inc. increased by $1.7 million from the beginning of the year. The company's net income earned during the year is $5.1 million. What is the amount of dividends Lambert Inc. declared and paid

Answer 1

Answer: $3.4 million

Step-by-step explanation:

The increase in Retained earnings is the net earnings for the year.

Net earnings are calculated by deducting dividends from the Net income.

Net earnings = Net income - Dividends

1,700,000 = 5,100,000 - Dividends

Dividends = 5,100,000 - 1,700,000

= $3,400,000

= $3.4 million