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-   -   Calculating Retained Earnings (https://www.askmehelpdesk.com/showthread.php?t=130477)

  • Sep 17, 2007, 08:25 AM
    Mhart27
    Calculating Retained Earnings
    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.
  • Sep 17, 2007, 05:02 PM
    billytalent
    You calculate RE like this: Beginning Balance + NI - Dividends

    You probably need the beginning retained earnings. Check the balance sheet.
  • Sep 18, 2007, 12:45 AM
    CaptainForest
    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.
  • Sep 18, 2007, 05:20 AM
    Mhart27
    Thanks.

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