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    Mhart27's Avatar
    Mhart27 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Sep 17, 2007, 08:25 AM
    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.
    billytalent's Avatar
    billytalent Posts: 7, Reputation: 3
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    #2

    Sep 17, 2007, 05:02 PM
    You calculate RE like this: Beginning Balance + NI - Dividends

    You probably need the beginning retained earnings. Check the balance sheet.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #3

    Sep 18, 2007, 12:45 AM
    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.
    Mhart27's Avatar
    Mhart27 Posts: 2, Reputation: 1
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    #4

    Sep 18, 2007, 05:20 AM
    Thanks.
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