After the net earnings are calculated, this value flows through to the balance sheet and cash flow statement. On the balance sheet, net earnings are included as retained earnings in the equity ...

A basic principle of accounting is that net operating losses are subtracted from retained earnings and thus from capital. If ...

If retained earnings has gone up, then the result will be less than the year's net earnings. If retained earnings have fallen, then the result will be greater than the net earnings for the year.

Both types of dividend reduce retained earnings and impact shareholders' equity. However, only cash dividends reduce cash on the balance sheet. Retained earnings represent the cumulative net ...