To stay in business, your company needs to earn more than it spends, at least over the long term. A net income formula tells you whether you are earning or losing money. However, this equation only ...

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.

Calculate dividends by subtracting year-end retained earnings from start-year retained earnings, then net income. Dividend payout ratio (DPR) is found by dividing total dividends by net income to ...

A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...