TopicDividend recap effect on balance sheet.
PostedWed, Jul 24th 2019 11:35 AM
Retained earnings are a little different. Remember the formula for the balance sheet? (Assets = Liabilities + Equity?) If you’ve filled out the rest of your balance sheet template, then you will have only retained earnings left to work with. Therefore, retained earnings are equal to Assets – Liabilities – Contributed Capital.
You may be wondering why you, as an individual, may need a personal balance sheet. The answer is that it’s an accurate and timely tool for measuring your financial worth and thinking about what changes you can take to enhance it.