View Is Retained Earning On Income Statement Images. On the other hand, company management may believe that they can better utilize the money if it is retained within the company. The calculation of retained earnings adds net income to beginning retained earnings for the period and subtracts dividends to be paid to.
Retained earnings fluctuate with changes in your income, dividends or adjustments to the previous period's accounts.
The purpose of retaining these earnings can be varied and includes buying new equipment and machines. The calculation of retained earnings adds net income to beginning retained earnings for the period and subtracts dividends to be paid to. The dividends are the amount which has been declared for the year not the amount paid during the this account forms part of the equity of the business, as it is retained in the business but belongs to the equity holders. Revenue is typically depicted at the top of a company's income statement to denote its overall financial performance for an accounting period.
