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Mhart27
Sep 17, 2007, 08:25 AM
I need to calculate RE with the following information:
NI=4,276 and dividends=1,724
Unsure of the formula or if I need any additional info.
Thanks.

billytalent
Sep 17, 2007, 05:02 PM
You calculate RE like this: Beginning Balance + NI - Dividends

You probably need the beginning retained earnings. Check the balance sheet.

CaptainForest
Sep 18, 2007, 12:45 AM
If it is a new company, the RE would be 0.

So it would just be Net Income – Dividends.

But Billy is right, check to see if there was an opening Retained Earnings account.

Mhart27
Sep 18, 2007, 05:20 AM
Thanks.