Retained earnings are a type of equity listed in the shareholders’ equity section of a company’s financial statements. Reserves and retained earnings may sound similar, but they are typically ...

this value flows through to the balance sheet and cash flow statement. On the balance sheet, net earnings are included as retained earnings in the equity section. Retained earnings for the balance ...

Here is the formula for calculating dividends: Annual net income minus net change in retained earnings = dividends paid. Image source: Getty Images. Second, the income statement in the annual ...