Financial mgt
This query is : Resolved
08 August 2014
meaning and formula of retain earning
Guest
Guest
(Expert)
08 August 2014
The percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders' equity on the balance sheet.
Guest
Guest
(Expert)
08 August 2014
+ Beginning retained earnings
+ Net income during the period
- Dividends paid
= Ending retained earnings
+ Net income during the period
- Dividends paid
= Ending retained earnings
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