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What does effect have on the statement of retained earnings

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You Hospital has two million dollars  of net income remaining at the end of 201x. The financial managers must decide whether to retain all the earnings or pay a dividend to stockholders.

Problem 1: If the financial managers pay dividends to stockholders in the amount of one million dollars (half of the net income amount), what effect does this have on the statement of retained earnings? What account(s) would be affected?

Reference no: EM132687864

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