If a Firm Has $1 000 000 in Retained Earnings

Short Answer

If a firm has $1 000 000 in retained earnings, what does this mean?
That the firm paid out $1 000 000 this year in dividends
That the company is owed $1 000 000 by its creditors but has not yet collected the money
That the firm has $1 000 000 in the bank
That the company's net profits less its dividend payments equals $1 000 000
That the company has saved $1 000 000 during the period since the last balance sheet was made up