Breakpoint for retained earnings = retained earnings/ WCE The Retained earnings how are they calculated, IE is it beginning RE and Ending RE for the year , or just the retained earnings for current year? Thanks
Retained Earnings: Retained earnings at the begining of the year+ Net profit for the year+ Any other realised profits - dividends paid to common stockholders= Retained Earnings at the end of the year. Any other realised profits = This is a very broad area and can include realised profits for excess depreciation on an asset revalued upwards,Sale of P&M revalued upwards, Sale of AFS assets, etc. Cheers Sumo
Like always, thanks Sumo!!