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.
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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.
You calculate RE like this: Beginning Balance + NI - Dividends
You probably need the beginning retained earnings. Check the balance sheet.
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.
Thanks.
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