please explain why $600,000 is the answer in this case

The year-end 2018 balance sheet of Brandex Inc. listed common stock and other paid-in capital at $1,100,000 and retained earnings at $3,400,000. The next year, retained earnings were listed at $3,700,000. The firm's net income in 2019 was $900,000. There were no stock repurchases during the year. What were the dividends paid by the firm in 2019? Dividends paid $ 600,000 Explanation Net income = Increase in retained earnings + Dividends $900,000 = ($3,700,000 - $3,400,000) + Dividends Dividends = $600,000