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E1.25 Key Relations: Revenues, Expenses, Dividends, and Retained Earnings. Compute the missing amounts (in millions) in the following table. (The balance in retained earnings
E1.25 Key Relations: Revenues, Expenses, Dividends, and Retained Earnings. Compute the missing amounts (in millions) in the following table. (The balance in retained earnings at year-end 2019 was $2.8.) Comment on the 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? (in millions) 2017 2018 2019 Retained earnings (beginning). 1.5 2.0 ?? Revenues 9.3 12.4 11.8 Expenses 6.6 ?? 11.0 Dividends ?? 0.6 0.6
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