Retained Earnings/Ending Cash

CFA General
#1

What is the difference between Retained Earnings & Ending Cash?

#2

All of the other assets, liabilities, and equity, netted.

#3

Thanks for the response. Can you elaborate on this a little… are you saying assets, liabilities, and equity, netted are included in one (retained earnings/ending cash) and not the other?
Which one?

Thanks again

#4

Look at a balance sheet:

Assets

  • Cash 100
  • Other Assets 900
  • Total Assets 1,000

Liabilities

  • Total Liabilities 600

Equity

  • Contributed Capital 100
  • Retained Earnings 300
  • Total Equity 400

The difference between Retained Earnings and Cash is: 300 - 100 = 200.

The other assets, liabilities, and equity, netted is: 900 - 600 - 100 = 200.