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. what is the amount of dividends lambert inc. declared and paid?

$5.2 million

Explanation:

Opening retained earnings + net income earned - dividend paid = Closing retained earnings

Given;

the ending Retained Earnings balance of Lambert Inc. increased by $2.6 million from the beginning of the year net income earned during the year is $7.8 million

Therefore,

Dividend paid = -$ 2.6 million + $7.8 million

                       = $5.2 million

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

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