Retained earnings refer to the portion of a company’s net income that ... are a type of equity listed in the shareholders’ equity section of a company’s financial statements.

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society ...

Annual net income minus net change in retained earnings = dividends paid. Image source: Getty Images. Second, the income statement in the annual report -- which measures a company's financial ...