Question

How do you find the change in retained earnings?

How do you find the change in retained earnings?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Retained Earnings is the portion of a firm's net income which is not paid out to its shareholder's as a dividend. Retained Earnings can be held as it is on a company's books or reinvested into the business to fuel its growth.

Changes in Retained Earnings is calculated using the following relationship:

Beginning Retained Earnings (adjusted for prior period loss/gain) + Net Income - Dividend = Ending Retained Earnings

Ending Retained Earnings - Beginning Retained Earnings = Net Income - Dividend

Change in Retained Earnings = Net Income - Dividend

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
How do you close Retained earnings? Do you do a journal entry?
How do you close Retained earnings? Do you do a journal entry?
How do you know if a stock is overvalued? Are retained earnings free? How does the...
How do you know if a stock is overvalued? Are retained earnings free? How does the popularity of mutual funds impact rights of shareholders? (500 words..only one question needs to be answered but more than one or all is fine as well)
Which of the following is TRUE of retained earnings? a. retained earnings do not appear on...
Which of the following is TRUE of retained earnings? a. retained earnings do not appear on any financial statement b. retained earnings represent investments by the stockholders of a corporation c. retained earnings represent capital that the corporation has earned through profitable operations d. retained earnings are a liability on the corporate balance sheet
Retained earnings will change from time to time due to several factors. What factors will explain...
Retained earnings will change from time to time due to several factors. What factors will explain the increase in retained earnings?
How do Financial Cash Flows (FCF), Net income, and Retained earnings impact one another?
How do Financial Cash Flows (FCF), Net income, and Retained earnings impact one another?
1. Which of the following is CORRECT? A. Retained Earnings (2015) = Retained Earnings (2014) –...
1. Which of the following is CORRECT? A. Retained Earnings (2015) = Retained Earnings (2014) – Net Income (2015) + Dividends (2015) B. Retained Earnings (2014) = Retained Earnings (2015) + Net Income (2014) – Dividends (2014) C. Retained Earnings (2015) = Retained Earnings (2014) + Net Income (2015) – Dividends (2015) D. Retained Earnings (2014) = Retained Earnings (2015) + Net Income (2014) + Dividends (2014)
Retained earnings at the end of the period is equal to: 1. retained earnings at the...
Retained earnings at the end of the period is equal to: 1. retained earnings at the beginning of the period plus profit minus dividends paid. 2. assets plus liabilities. 3. profit plus total assets. 4. retained earnings at the beginning of the period plus profit minus liabilities.
If a firm has retained earnings of $22.2 million, a common shares account of $274.2 million,...
If a firm has retained earnings of $22.2 million, a common shares account of $274.2 million, and additional paid-in capital of $99.2 million, how would these accounts change in response to a 20 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Leave no cells blank – be certain to enter "0" wherever required. Do not round intermediate calculations and round your final answers to the...
an adjustment to unappropriated retained earnings to eliminate appropriated retained earnings is a deduction a deduction...
an adjustment to unappropriated retained earnings to eliminate appropriated retained earnings is a deduction a deduction to the extent of dividends paid a addition a addition to the extent of dividends paid
If a firm has retained earnings of $22.5 million, a common shares account of $274.5 million,...
If a firm has retained earnings of $22.5 million, a common shares account of $274.5 million, and additional paid-in capital of $99.5 million, how would these accounts change in response to a 20 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your final answers to the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT