In the world of finance, understanding Retained Earnings is crucial for investors and business owners alike. This financial term holds the key to a company’s financial health and growth prospects.

Take the retained earnings at the beginning of the year and subtract it from the end-of-year number. That will tell you the net change in retained earnings for the year. Next, take the net change ...

Cash dividends affect the cash and shareholder equity on the balance sheet; retained earnings and cash are reduced by the total value of the dividend. Stock dividends have no impact on the cash ...