View Full Version : Calculating Retained Earnings
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.