Retained earnings represent the accumulated net income your business keeps after paying all costs, expenses and taxes. The retained earnings balance changes if you pay your stockholders a dividend. If ...

Net income - dividends + retained income from prior years = retained income Let's assume, for instance, that Company X ends its fiscal year with $10 million in retained income on the books. Now let's ...

When a publicly held corporation earns a profit, the money is usually split between dividend payments and retained earnings. Typically, companies calculate retained earnings by subtracting dividends ...

Most business owners are familiar with the term “net income.” But what about “retained earnings?” This financial metric is just as important as net income, and it’s essential to understand what it is ...

Discover how accumulated funds work in nonprofits, similar to corporate profits, and how they ensure liquidity. Learn through examples of surpluses and deficits.

Retained earnings are profits that are earned by a company but are not distributed out to shareholders as dividends payments. Retained earnings can be used to fund operations, for large capital ...

Discover how return on retained earnings (RORE) measures reinvested profits and indicates a company's growth potential. Learn its impact on business efficiency.

To encourage corporations to pay dividends rather than accumulating earnings and allowing shareholders to avoid income taxes, the accumulated earnings tax imposes a penalty tax on earnings accumulated ...

Under IRC section 162(a)(1), businesses can deduct bonuses they pay employees as reasonable compensation for services actually rendered in the current or prior years. The courts have generally applied ...

Apple has been buying back shares at a record clip regardless of the price of the stock. Retained earnings went negative TTM on the Apple Balance sheet. The financial engineering extravaganza is ...