Retained earnings are the cumulative profits that a business holds onto for operations after any dividends have been paid. Retained earnings refer to the portion of a company’s net income that ...

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.

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 ...