Question

The ending retained earnings balance of juan's mexican restaurant chain increased by $4.3 million from the beginning of the year. the company declared a dividend of $2.3 million during the year. what was the net income earned during the year?

Answer 1

The formula to solve the net income earned during the year is;
Increase in retained earning + Dividends = Net income
$4.3 million + $2.3 million =  $6.6 million.

I just revised the formula of increase of retained earning which is Increase of retained earning = net income - dividends.