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

    Jul 12, 2008, 01:46 PM
    Retained Earnings
    Retained Earnings Computations

    2009 Revenues 230,000
    Expenses with income tax 190,000
    Cash dividend 25,000

    2008 Assets 350,000
    Liabilities 80,000
    Stock 210,000

    2009 had a cash dividend of 25,000

    No additional stocks were added. How do you compute the retained earnings on 2008 and 2009?? :confused:
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jul 12, 2008, 08:47 PM
    Assets = Liabilities + Stock + Retained Earnings

    Retained Earnings Beginning Balance + Net Income - Dividends Declared = Ending Balance

    Use those, put in the numbers you have and work your way towards the missing numbers.
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