Retained Earnings Calculation

Here is the simple online Retained Earnings calculator to find the ending retained earnings (RE) of an organization or company based on the beginning balance, dividends, and the net income. It is also known as plow back or ending retained earnings. It is a part of the net income of a corporation that is retained by the corporation rather than distributed to shareholders as dividends. Retained earnings helps to reduce the corporation from losses if any.

Ending Retained Earnings Calculator

Here is the simple online Retained Earnings calculator to find the ending retained earnings (RE) of an organization or company based on the beginning balance, dividends, and the net income. It is also known as plow back or ending retained earnings. It is a part of the net income of a corporation that is retained by the corporation rather than distributed to shareholders as dividends. Retained earnings helps to reduce the corporation from losses if any.

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Formula:

Ending Retained Earnings = Beginning RE + Net Income - Dividends

Example:

A company has Net Income of 100000$ and a beginning RE of 50000$. It pays out $1000 as dividends. What is the ending retained earnings of the company?

Solution:

Ending Retained Earnings = Beginning RE + Net Income - Dividends
= 50000 + 100000 - 1000
= $149000


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