Understanding Retained Earnings: Impact on Business Success
A statement of retained earnings details the changes in a company’s retained earnings balance over a specific period, usually a year. Investors pay close attention to retained earnings since the account shows how much money is available for reinvestment back in the company and how much is available to pay dividends to shareholders. Your Bench account’s Overview page offers contra asset account an at-a-glance summary of your income statement and balance sheet, allowing you to review your profitability and stay on top of your cash flow from month to month. How Do You Calculate Retained Earnings on the Balance Sheet? Although retained earnings are not themselves an asset,Read More →