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    Mar 26, 2009, 03:03 PM
    Calculating Retained Earnings
    When I calculate retained earnings, is it the sum of all net income / losses that the business has been in operation? Or is it only for the fiscal year? For example:

    Year Ending
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    #2

    Mar 26, 2009, 03:06 PM
    Sorry, hit enter by accident:

    Year ending:
    2008 net income $2,500,000
    2009 net income $1,750,000
    2010 net income $1,300,000
    2011 net income $(2,200,000)

    Dividends paid out = $1,200,000 paid out in October 2008

    therefore would the retained earnings be: $3,350,000 - dividends $1,200,000 = $2,150,000?
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