Retained Earnings Formula
Retained earnings refer to the amount of net profit a company retains without paying it out as dividends to its shareholders.
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Retained earnings can be calculated using the retained earnings formula, as follows:
Retained earnings = retained earnings from a previous period + net income - dividends
This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.
