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.

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.

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

To demonstrate, we can calculate a company's total expenses based on its total revenue from the income statement and its owners' equity from the balance sheet.

Though a balance sheet is intended to be a gateway to understanding a company's financial position, there are lots of places on one for valuable information to hide. Here's where to look.

With some additional information, it's entirely possible to calculate net income from assets, liabilities, and equity reported on a balance sheet. Here's how to do it under three circumstances.

To demonstrate, we can calculate a company's total expenses based on its total revenue from the income statement and its owners' equity from the balance sheet.

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.

Many business owners have trouble reading their income statement, nevermind demonstrating an understanding of their balance sheet or statement of cash flows.

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