Chapter 1 | The Economic Environment of Accounting Information E1.25 Key Relations: Revenues, Expenses, Dividends, and Retained Earnings. Compute the missing amounts (in CHECK millions) in the following table. (The balance in retained earnings at year-end 2012 was $2.2.) Comment on the FIGURE firm's performance over the three-year period after calculating the level of expenses as a percentage of total rev- enues and net income as a percentage of total revenues. What advice would you give to this company in regards to its dividend policy? 2010 2011 2012 Retained earnings (beginning) $1.2 $ 2.0 ? Revenues ... 8.8 11.8 11.8 Expenses . ... 7.4 ? 11.0 Dividends . ? .6 .6