These are the three numbers we need to calculate how much it paid in dividends in 2014. The first step is to figure out how much of Costco's earnings it retained in 2014.

Typically, companies calculate retained earnings by subtracting dividends from net income. However, you can reverse this procedure by using retained earnings to figure the dividend payment amount.

To calculate the retained earnings, you need to have the beginning retained earnings, current profit or loss amount, and any dividends paid to shareholders during the year.

The article How to Calculate the Capitalization of Retained Earnings for a Small Stock Dividend originally appeared on Fool.com. Try any of our Foolish newsletter services free for 30 days.

One way to calculate total dividends paid in any given period is to look at net income, and the change in retained earnings. Net income = profits or losses earned a period of time.

The article How to Calculate the Capitalization of Retained Earnings for a Small Stock Dividend originally appeared on Fool.com. Try any of our Foolish newsletter services free for 30 days.

Post Starship success, Starfactory aims to produce one rocket per day. Buick has introduced another crossover to its lineup for 2024, the compact Envista, which ...

Since dividends are subtracted from net income to calculate retained earnings, they are also listed in the stockholders' equity section of the balance sheet.

And since dividends are subtracted from net income to calculate retained earnings, they are also listed in the stockholders' equity section of the balance sheet.

Discover how to calculate free cash flow to equity to evaluate a firm's financial health, crucial for companies not paying ...