Question

the ending retained earnings balance of lambert inc. increased by $2.6 million from the beginning of the year. the company's net income earned during the year is $7.8 million and the beginning balance of retained earnings was $6.2 million. what is the amount of dividends lambert inc. declared and paid during the year? $2.6 million $5.2 million $10.4 million $7.8 million

Answer 1

The amount of dividends Lambert Inc. declared and paid is $5.2 million.

What is dividend?

A dividend refers to the sum paid to people who invest in a company, at the end of the financial year. In other words,  it is a reward paid to the shareholders for their investment in a company's equity.

We know that:

Closing retained earnings

= Opening retained earnings + net income earned - dividend paid

Then,

The ending Retained Earnings balance of Lambert Inc. increased by $2.6 million from the beginning of the year

Also, net income earned during the year is $7.8 million

Hence,

Dividend paid

= -$ 2.6 million + $7.8 million

= $5.2 million

With regards to the above, the amount of dividends Lambert Inc. declared and paid is $5.2 million.

Learn more about dividend here: brainly.com/question/13991661

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