This document discusses retained earnings and dividends. It defines retained earnings as the percentage of net earnings not paid out as dividends but retained by the company to reinvest in its core business or pay debt. The purposes of retained earnings are listed as accumulating earnings, investing in fixed assets, and meeting working capital needs. A step-by-step calculation is provided to demonstrate how ending retained earnings is determined based on beginning retained earnings, net income, and dividends paid out. Dividends are also defined as benefits provided to investors from a company's profits or reserves.
Introduction to Financial statements - AccountingFaHaD .H. NooR
Financial statement introduction and its elements.
There are three fundamental financial statements used in accounting.
The income statement shows revenues and expenses.
The balance sheet is a listing of all asset, liability, and equity account balances that do not appear on the income statement.
The statement of cash flows shows how the company receives and spends its cash.
The golden rules in accounting or rules of debit and creditkaslinsas
Journal Entries cannot be recorded without some rules. The rules which are used to record a journal entry are called Golden rules of Accounting. It means debit the person who receives something from the business
An introduction to the three main financial statements using a tree analogy. If you like this, just imagine what I can do in person at your next event. Go to www.geniwhitehouse.com or www.evenanerd.com for more information and my list of topics, expertise, and nerdy obsessions.
My next deck is going to include basset hounds (see my post from 2023). That is a promise.
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
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Learning Objective 1: To explain the nature and general purpose of financial statements.
Learning Objective 2: To explain certain accounting principles that are important for an understanding of financial statements and how professional judgment by accountants may affect the application of those principles.
Learning Objective 3: To demonstrate how certain business transactions affect the elements of the accounting equation: Assets = Liabilities + Owners’ Equity.
Learning Objective 4: To explain how the statement of financial position, often referred to as the balance sheet, is an expansion of the basic accounting equation.
Learning Objective 5: To explain how the income statement reports an enterprise’s financial performance for a period of time in terms of the relationship of revenues and expenses.
Learning Objective 6: To explain how the statement of cash flows presents the change in cash for a period of time in terms of the company’s operating, investing, and financing activities.
Learning Objective 7: To explain the important relationships among the statement of financial position, income statement, and statement of cash flows, and how these statements relate to each other.
Learning Objective 8: To explain common forms of business ownership—sole proprietorship, partnership, and corporation—and demonstrate how they differ in terms of their presentation in the statement of financial position.
Learning Objective 9: To discuss the importance of financial statements to a company and its investors and creditors and why management may take steps to improve the appearance of the company in its financial statements.
Define the terms paid-in-capital and retained earningsDefine.pdfalshaikhkhanzariarts
Define the terms paid-in-capital and retained earnings
Define the terms paid-in-capital and retained earnings
Define the terms paid-in-capital and retained earnings
Solution
Paid in Capital represent the Contributed Capital by an investor into the Company, It is the fund
raised by the company in form of Equity or Prefered Stock Capital
Paid in Capital Includes Par value & Additional Paid in Capital i.e Premium on Issue of Equity
or Preffered Stock, It is being Reflected in Balance Sheet Under the Stockholders Equity Section
Retained Earning is the amount retained by the firm or company out of Net Income i.e Net
Income Less Dividend Paid, It is being retained for reinvestment of fund in the business or It is
being used to repay the debt . It is also being Shown in Balance Under the Stockholders Equity
Section.
Ending retained Earning balance is being calculated by using the below formula :
Ending retained Earning balance = Beginning Retained Earning + net Income - Dividend Paid.
What is the simple formula for figuring Addition to Retained earn.pdfarrowmobile
What is the simple formula for figuring Addition to Retained earnings?
What is the simple formula for figuring Addition to Retained earnings?
Solution
Retained earnings is the amount of money that the company keeps aside for future. The aim of a
company is to maximize the wealth of the shareholders. The company provides dividends to the
shareholders to maximize their wealth. The retained earnings is calculated by subtracting the
dividends feom the net income. The amount of money that is left after the dividends are paid is
known as retained earnings. Any addition to retained earnings will be identified by the increase
in the value of the net income or decrease in the value of the dividends. The addition of retained
earnings will be clear when the dividends are less and net income is more.
Retained earnings = net income - dividends.
Introduction to Financial statements - AccountingFaHaD .H. NooR
Financial statement introduction and its elements.
There are three fundamental financial statements used in accounting.
The income statement shows revenues and expenses.
The balance sheet is a listing of all asset, liability, and equity account balances that do not appear on the income statement.
The statement of cash flows shows how the company receives and spends its cash.
The golden rules in accounting or rules of debit and creditkaslinsas
Journal Entries cannot be recorded without some rules. The rules which are used to record a journal entry are called Golden rules of Accounting. It means debit the person who receives something from the business
An introduction to the three main financial statements using a tree analogy. If you like this, just imagine what I can do in person at your next event. Go to www.geniwhitehouse.com or www.evenanerd.com for more information and my list of topics, expertise, and nerdy obsessions.
My next deck is going to include basset hounds (see my post from 2023). That is a promise.
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/SlideshareFaccounting
Join us on Facebook: http://www.facebook.com/welearnindia
Follow us on Twitter: https://twitter.com/WeLearnIndia
Read our latest blog at: http://welearnindia.wordpress.com
Subscribe to our Slideshare Channel: http://www.slideshare.net/welingkarDLP
Learning Objective 1: To explain the nature and general purpose of financial statements.
Learning Objective 2: To explain certain accounting principles that are important for an understanding of financial statements and how professional judgment by accountants may affect the application of those principles.
Learning Objective 3: To demonstrate how certain business transactions affect the elements of the accounting equation: Assets = Liabilities + Owners’ Equity.
Learning Objective 4: To explain how the statement of financial position, often referred to as the balance sheet, is an expansion of the basic accounting equation.
Learning Objective 5: To explain how the income statement reports an enterprise’s financial performance for a period of time in terms of the relationship of revenues and expenses.
Learning Objective 6: To explain how the statement of cash flows presents the change in cash for a period of time in terms of the company’s operating, investing, and financing activities.
Learning Objective 7: To explain the important relationships among the statement of financial position, income statement, and statement of cash flows, and how these statements relate to each other.
Learning Objective 8: To explain common forms of business ownership—sole proprietorship, partnership, and corporation—and demonstrate how they differ in terms of their presentation in the statement of financial position.
Learning Objective 9: To discuss the importance of financial statements to a company and its investors and creditors and why management may take steps to improve the appearance of the company in its financial statements.
Define the terms paid-in-capital and retained earningsDefine.pdfalshaikhkhanzariarts
Define the terms paid-in-capital and retained earnings
Define the terms paid-in-capital and retained earnings
Define the terms paid-in-capital and retained earnings
Solution
Paid in Capital represent the Contributed Capital by an investor into the Company, It is the fund
raised by the company in form of Equity or Prefered Stock Capital
Paid in Capital Includes Par value & Additional Paid in Capital i.e Premium on Issue of Equity
or Preffered Stock, It is being Reflected in Balance Sheet Under the Stockholders Equity Section
Retained Earning is the amount retained by the firm or company out of Net Income i.e Net
Income Less Dividend Paid, It is being retained for reinvestment of fund in the business or It is
being used to repay the debt . It is also being Shown in Balance Under the Stockholders Equity
Section.
Ending retained Earning balance is being calculated by using the below formula :
Ending retained Earning balance = Beginning Retained Earning + net Income - Dividend Paid.
What is the simple formula for figuring Addition to Retained earn.pdfarrowmobile
What is the simple formula for figuring Addition to Retained earnings?
What is the simple formula for figuring Addition to Retained earnings?
Solution
Retained earnings is the amount of money that the company keeps aside for future. The aim of a
company is to maximize the wealth of the shareholders. The company provides dividends to the
shareholders to maximize their wealth. The retained earnings is calculated by subtracting the
dividends feom the net income. The amount of money that is left after the dividends are paid is
known as retained earnings. Any addition to retained earnings will be identified by the increase
in the value of the net income or decrease in the value of the dividends. The addition of retained
earnings will be clear when the dividends are less and net income is more.
Retained earnings = net income - dividends.
What specific balance sheet account provides the link between the ba.pdfarhamgarmentsdelhi
What specific balance sheet account provides the link between the balance sheet and the income
statement? Thoroughly describe how this linkage works.
Solution
The Retained earnings account in the balance sheet provides the link to the income statement.
Retained earnings are the residual earnings left over after distributing the cash dividends to the
stock holders.
Closing retained earnings= Opening retained earnings + Net income - Cash dividends.
Net income is arrived from the income statement
Cash dividends are arrived at by the Board of directors
Opening retained earnings are the earnings carried forward from the previous years.
Closing retained earnings is added to the stockholders equity account and reflected in the
balance sheet.
The carrying of the net income to the balance sheet ensures there is uniform distribution of
accounts from the income statement to the balance sheet and also ensures balance of accounts.
Investment:
Relationship between profit and investment is shown by computing “Rate of Return ratios”.
Return on Investment (ROI)
Return on Total Resources
Return on Equity (ROE)
Earning Per Share Ratio (EPS)
Fixed Assets Turnover Ratio
Debt to Total Fund Ratio
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
4. Retained Earning
Definition
“The percentage of net earnings not paid out as
dividends, but retained by the company to be
reinvested in its core business or to pay debt”
Formula
Retained Earning (R.E)= Begning Retained Earning + Net income -Dividends
(R.E ) Also known as the "retention ratio" or "retained surplus".
5. Purposes Of Retained Earnings
1 . Accumulation Of Earnings
2. Investment in Fixed assets
3.
To meet working capital needs
6. Calculation f Retained Earning
Suppose a company ABC Having
Net Profits In current accounting period = $ 5,00000
Dividends pay out
= $ 1,50000
Beginning Retained Earning
= $ 12,00000
Ending Retained Earnings
= ???
Solution
Begning Retained Earnings
+Net Income (Current Accounting Period)
-Dividends pay out
Ending Retained Earning
$ 12,00000
+ $ 5,00000
-------------$ 17,00000
- $ 1,50000
-------------$ 15,50000
8. Step By Step Calculation Of Retained Earnings
1.
Gross Profit
= Sale – C.G.S
2. Operating Income
= Gross Profit – operating Expenses
3. Pre-tex net income
= operating income – interest –
4. After Tex Net Income
Depreciation – Amortization
= Pre tex net income – Taxes
5. Retained Earning (Current Period )= After Tex net income – Dividends
6. Retainned Earning(Ending Balance) = Retained Earning(Current Period )
+ Account balance (Opening Balance)
9. Dividends:“Benefits Provided To the Investors are Called The
Dividends
”
OR
“A sum of money paid regularly (typically annually) by
a company to its shareholders out of its profits (or
reserves)”
Ways of The dividends Payment
Cash Dividends
2. Stock Dividends
3. Liquidating Dividends
1.
10. Payments of Dividends Out Of
1) Retained Earnings
2) Cash Balance
(1st
Focuse )
(2nd Focuse )
3) Organization Directors
(3rd Focuse )