Originally Posted by
skip4
hello,
I am working on a homework problem and need some help... I have a company's balance sheet, which includes retained earnings. My assignment is asking me to calculate net income. I also know the amount of dividents paid out. How can I calculate net income from the information on a balance sheet? I know it has something to do with retained earnings, but I cannot figure it out.
Thanks:confused:
Informaiton contained in the question is not complete still you can calculate the profit in many ways like :
Diffrence of the capital at the begning and ending capital.
Or retainded earnings+dividends paid +other reserves created out of profits (if given)