The ending Retained Earnings balance of Lambert Inc. increased by $2.3 million from the beginning of the year. The company's net income earned during the year is $6.9 million. What is the amount of dividends Lambert Inc. declared and paid?

A) $4.6 million

B) $2.3 million

C) $9.2 million

D) $6.9 million

Question

Business

Hamza

20 April, 19:18

The ending Retained Earnings balance of Lambert Inc. increased by $2.3 million from the beginning of the year. The company's net income earned during the year is $6.9 million. What is the amount of dividends Lambert Inc. declared and paid?

A) $4.6 million

B) $2.3 million

C) $9.2 million

D) $6.9 million

+5

Answers (1)

Know the Answer?

Nolan Guzman · Answer 1

Net dividend will be $4.6 million

So option (a) will be the correct answer

Explanation:

We have given that ending retained earning balance of Lambrat lnc increased by $2.3 million

And the company net income earned during the year = $6.9 million

We have to find the amount of dividends Lambart lnc declared and paid

Amount of dividend will be given by

Dividend = $6.9 million - $2.3 million = $4.6 million

So option (a) will be the correct option

The ending Retained Earnings balance of Lambert Inc. increased by $2.3 million from the beginning of the year. The company's net income earned during the year is $6.9 million. What is the amount of dividends Lambert Inc. declared and paid?A) $4.6 millionB) $2.3 millionC) $9.2 millionD) $6.9 million