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    albertina's Avatar
    albertina Posts: 1, Reputation: 1
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    #1

    May 30, 2008, 07:07 PM
    Finding the net income from two years
    I am reading about cash flow statements. However, I am confused by the examples given. The net income is given to me of $108,00; however, this is not the difference between the retained earnings from the two years given on the comparative balance sheet. Am I supposed to be able to determine the net income from a comparative balance sheet? How do I get the net income from comparative years?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    May 31, 2008, 08:30 PM
    Retained earnings:
    Beginning Balance + Net Income - Dividends Declared = Ending Balance

    The dividends declared is accounting for part of the change in retained earnings.
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