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How to Calculate Retained Earnings?



This article will explain How to Calculate Retained Earnings?



What is Retained Earnings?

In Accounting, Retained earnings (RE) is the amount of net income left over for the business after it has paid out dividends to its shareholders.



What is The Formula of Retained Earnings?

The end of period Retained Earnings equlas to:

Start of Period Retained Earnings

+

Net Income During the Period

-

Dividends Paid



How to Retained Earnings?

First Step: Start of Period Retained Earnings

Second Step: Add Net Income During the Period

Third Step: Subsract Dividends paid



Example of Retained Earnings

Given the following Data:

Start of Period Retained Earnings: $ 10,000.00

Net Income During the Period: $ 2,000.00

Dividends paid: $ 1,000.00

The end of period Retained Earnings equlas to: $ 11,000 (10,000 + 2,000 - 1,000)



To find out How to Calculate Retained Earnings you could also use our Retained Earnings calculator



Retained Earnings Calculator













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What is the ICalc website for?

Life is full of computational problems. Most of them can be solved simply. The ICalc calculator site includes hundreds of calculators that will help you solve a wide range of problems in many areas, such as health, economics, math, finance, and more.

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