Question: Net Income and Retained Earnings Google Inc. is a well-known Internet company. The following data are from its financial statement for the year ended December 31, 2011 (in millions):
1. Prepare Google's income statement for the year. The final three lines of the income statement were labeled as income before taxes, provision for income taxes, and net income.
2. Compute the change in retained earnings, and use that to determine the amount of dividends paid.
3. Comment briefly on the relative size of the cash dividend.