Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   Retained earnings (https://www.askmehelpdesk.com/showthread.php?t=158488)

  • Dec 2, 2007, 04:24 PM
    cettin
    Retained earnings
    I need to calculate the retrained earnings for 06 and 05
    For 06 I only have the revenue and expenses figures
    For 05 I have the assets, liabilities, capital stock and dividends

    How do I calculate the retained earnings for the 2 years

    Thanks :)
  • Dec 4, 2007, 02:30 PM
    CaptainForest
    I assume you mean ending RE?

    Ending RE for 2005:
    Assets = Liabilities + Capital Stock – Dividends – Retained Earnings

    Therefore,
    Ending RE 2005 = Liabilities + Capital Stock – Dividends – Assets


    As for 2006:
    Opening RE (which is the ending 2005 RE which you just calculated above)
    Plus Revenue
    Less Expenses
    Equals Closing RE 2006

  • All times are GMT -7. The time now is 02:58 AM.