The expanded accounting equation shows how income and expenses contribute to retained earnings while maintaining overall balance. A financial advisor can help you evaluate investment opportunities ...

Retained earnings are the cumulative profits that a business holds onto for operations after any dividends have been paid. Retained earnings refer to the portion of a company’s net income that ...

Most companies report their dividends on a cash flow statement, in a separate accounting ... is the formula for calculating dividends: Annual net income minus net change in retained earnings ...