Retained Earnings: What They Are and How to Calculate Them

The amount of a corporation's retained earnings is reported as a separate line within the stockholders' equity section of the balance sheet. However, the past earnings that have not been distributed as dividends to the stockholders will A CPAs Perspective: Why You Should or Shouldnt Work with a Startup likely be reinvested in additional income-producing assets or used to reduce the corporation's liabilities. Due to the nature of double-entry accrual accounting, retained earnings do not represent surplus cash available...