Compute the missing amounts in the following table. ( at the end of 2007, retained earnings had a balance of negative $2086) Comment on the company’s performance over the three year period after calculating the relationship of expenses as a percentage of revenues and net income as a percentage of revenues. Do you agree with the company’s dividend policy? Why?
2006 2007. 2008
Retained earning ( beginning)…………………….$1746.5). $5327.0. $2653.0
Revenues…………………………………………………..4840.5. 5327.0. ?
Expenses…………………………………………………….? 5628.0 5425.0
Dividends…………………………………………………….. 0 ? 17.5