Question

The ending retained earnings balance of the Taco Heaven restaurant chain increased by $2.6 million from the beginning of the year. The company had declared a dividend of $1.5 million. What was the net income earned during the year

Answer 1

Answer: $4.1 million

Explanation:

From the question, we are informed that the ending retained earnings balance of the Taco Heaven restaurant chain increased by $2.6 million from the beginning of the year and that the company had declared a dividend of $1.5 million.

The net income earned during the year will be:

= $2.6 million + $1.5 million

= $4.1 million