I have been looking for a formula to calculate retained earnings and I have found so many that I am unsure what to use? Can anyone help or at least tell me if one the ones listed below is correct?

Assets – Liabilities = Retained Earnings
Owners Equity = Capital stock+retained earnings
assets – liabilities-capital stock = retained earnings

Also would I use a different formula to calculate retained earnings for the previous year?

NEED HELP

santys72

Assets - Liabilities = Stockholders Equity

Stockholders Equity = Common Stock + Retained Earnings + APIC (Additional Paid in Capital)

Capital Stock= Common Stock + APIC + preferred Stock

assets – liabilities-capital stock = retained earnings

These are formulas that you can use in very straightforward RE calculations, but stockholders equity is more than that. You have treasury stocks, appropriation of RE, Quasi Reorganiztions. Stock dividends and split stock.

But I guess that for simple programs you can use them. I answer a problem today related to RE check it out, it can help you out.