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 isthe amount of dividends Lambert Inc. declared and paid?Multiple Choice$3.4 million$6.8 million$1.7 million$5.1 million

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Asked Nov 5, 2019
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Q. question 5

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?
Multiple Choice
$3.4 million
$6.8 million
$1.7 million
$5.1 million
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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? Multiple Choice $3.4 million $6.8 million $1.7 million $5.1 million

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Expert Answer

Step 1

Dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

Step 2

Compute the amount of dividend declared and paid:

Let us assume that the beginning balance of retained earnings as ...

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