33+ Retained Earning Net Income Pictures. What retained earnings tells you. Balance amount left for the company after deducting the expenses such as the cost of goods sold, salary expenses, interest, taxes, depreciation & amortization from the net sales of the company.
This video discusses the difference between retained earnings and net income. Retained earnings are shown on the balance sheet as accumulated income from the prior year (including the current year's income) subtracts dividends paid to shareholders. Net income is the bottom line used to describe an organization's financial performance.
Retained earnings is a part of the net income or net profit retained by the company after paying a dividend to the shareholders.
Net income is a business' profit minus the cost of goods sold, taxes, and expenses for the current accounting period. Retained earnings implies that, historically, your company has had net income. What is retained by the company is a portion of net profit which is income increase: This video discusses the difference between retained earnings and net income.