A balance sheet is a statement of your business' worth, and while these numbers change on a daily basis, it’s important that every small business owner knows and understands them.

But the calculations for showing the income statement earnings and the balance sheet net worth, use accounting conventions that don't always correlate or translate clearly into compatible numbers.

Learn how to build a balance sheet to assess your liabilities, assets and equity, and better understand your financial picture.

Learn financial statement analysis techniques, including horizontal, vertical, and ratio analysis, to assess company ...

Using net income and retained earnings to calculate dividends paid To figure out dividends when they're not explicitly stated, you have to look at two things. First, the balance sheet -- a record ...

Suppose you're preparing the balance sheet for the third quarter. Take the second quarter retained earnings, add the company's net income for the third quarter, subtract dividends and you're there.

An income statement shows the ability of a company to generate profit while a balance statement shows a business’s assets and liabilities. Discover the importance and how to read them.

However, you can actually calculate dividends having nothing more than a balance sheet and an income statement. Net income and retained earnings ...

Stockholders' equity is the book value of shareholders' interest in a company; these are the components in its calculation.

In 2014, Costco reported net income of $2.058 billion on its income statement. On its balance sheet, it reported having retained earnings of $6.283 billion at the end of 2013, and $7.458 billion ...

Next, divide the earnings total you just calculated by the number of outstanding shares listed on the balance sheet. This will give you the EPS. For example, if a company's net income was $10 ...

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