Question: Compute the missing amounts in the following table. (The balance in retained earnings at year-end 2006 was $2.2.) Comment on the firms performance over the

Compute the missing amounts in the following table. (The balance in retained earnings at year-end 2006 was $2.2.) Comment on the firms performance over the three year period after calculating the level of expenses as a percentage of total revenues and net income as a percentage of total revenues. What advice would you give to this company in regards to its dividend policy?

2004

2005

2006

Retained earnings (beginning)

$1.2

$2.0

?

Revenues

8.8

11.8

11.8

Expenses

7.4

?

11.0

Dividends declared

?

.6

.6

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!