🧮Retained Earnings & Equity

Ending Retained Earnings

Beginning RE + Net Income - Dividends = Ending RE

What It Means

How much profit the company has kept over time.

Beginning RE:$500,000

Net Income:$100,000

Dividends:$30,000

$500,000 + $100,000 - $30,000

Ending RE = $570,000

Dividends Paid ÷ Net Income × 100 = Dividend Payout Ratio %

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