Despite that an amount of $2,400 is known for retained earnings, the amount of cash dividends that the company is able to pay cannot be determined.
What is retained earnings?
Retained earnings means the profit generated and set aside for the company's future purpose.
The amount of Retained earnings does not reflects the cash dividends paid to shareholders.
In conclusion, despite that an amount of $2,400 is known for retained earnings, the amount of cash dividends that the company is able to pay cannot be determined.
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