Retained earnings relations. Selected data affecting retained earnings for Volvo Group, a Swedish automobile manufacturer, for four recent years appear on the following page (amounts in millions of Swedish kronor):

a. Compute the missing amounts for each of the four years.

b. Retained earnings increased but at a decreasing rate between Year 3 and Year 5 and declined between Year 5 and Year 6. What is the apparent explanation for these changes?

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Retained Earnings, January 1 Net Income .... Dividends Declared and Paid Retained Earnings, December 31 Year 3 Year 4 Year 5 Year 6 Kr25,634 ? ? Kr37,922 5,665 Kr 4,940 ? ? 815 ? ? 34,338 Kr 1,203 1,203 37,922 35,669