What is the difference between Retained Earnings & Ending Cash?
All of the other assets, liabilities, and equity, netted.
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?
Look at a balance sheet:
- Cash 100
- Other Assets 900
- Total Assets 1,000
- Total Liabilities 600
- 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.