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    philandoc's Avatar
    philandoc Posts: 2, Reputation: 1
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    #1

    Apr 16, 2009, 10:52 AM
    How do you calculate retained earnings?
    I need help calculating retained earnings? I'm having a hard time understanding this topic in my accounting class.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Apr 16, 2009, 05:22 PM

    Basically Retained Earnings is the Net Income for the year that is retained in the business.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Apr 16, 2009, 07:38 PM

    Since this is for class, the information you have available to calculate it could consist of different things.

    It's basically the beginning balance, plus net income off the income statement (or minus net loss), less dividends declared, which gives you ending balance.

    But that's real life.

    But problems in books can do all kinds of weird things, so that may not be anything close to what you need.
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