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

    Mar 18, 2008, 08:27 AM
    Retained earnings plus net income?
    Is the balance of retained earnings the sum of retained earnings account + net income account?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Mar 18, 2008, 01:06 PM
    Yes, and it also includes the decrease in dividends.

    Opening Retained Earnings + Net Income – Dividends = Closing Retained Earnings.
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