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    KONIGIN's Avatar
    KONIGIN Posts: 9, Reputation: 0
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    #1

    Nov 8, 2008, 07:05 PM
    Formula to find Retained Earnings
    2 Questions
    1)Find the amount of retained earnings for 2007
    2) Find the amount of cash that is in the retained earnings account as of 2007

    2007
    cash revenue=$36,000
    Cash Expense=$22,000
    Cash Dividends=$1,000
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Nov 8, 2008, 07:22 PM

    Subtract your expenses from your revenues. This is your Net inome. Next Subtract Divends paid and the result is Net Retained Earnings for the year.

    Add the net retained earnings to your Retained Earnings Account. This is your total Retained Earnings.
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