A firm reports net income of $500.000 for 2011. The most recent balance sheet for the reports

Question:

A firm reports net income of $500.000 for 2011. The most recent for the reports retained earnings of $2.000.000. The firm will pay out 25% of net income as dividends. What will the new balance be for retained earnings?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...