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    logan97530223's Avatar
    logan97530223 Posts: 3, Reputation: 1
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    #1

    Feb 14, 2010, 10:46 AM
    Calculate retained earnings
    If I am given retained earnings and a cash dividend amount for a given period how do I calculate the net income? Also, if I am given the revenues for the same information how do I calculate the expenses incurred?
    logan97530223's Avatar
    logan97530223 Posts: 3, Reputation: 1
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    #2

    Feb 15, 2010, 02:48 PM
    Retained Ernings
    If retained earnings increased by $350,000 and a cash dividend was paid out of 135,000 what was net income for the year? Andrevenues were $830,000 what was where the Expenses for the year?
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    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Feb 16, 2010, 05:48 PM

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

    Net Income = Revenues - Expenses

    Those are the only things affecting retained earnings, and they're expecting you to do a little backwards math and solve for the missing numbers.
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    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    Feb 17, 2010, 02:39 AM

    I have moved your other post into this thread. Please do not double-post.
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