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Determining (Calculating) Retained Earnings and Net Income Using Only the Balance Sheet




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Title :  Determining (Calculating) Retained Earnings and Net Income Using Only the Balance Sheet
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@simonealbritton1556
Why wouldnt the cash dividends be taken out of the difference in retained earnings? Why wouldnt it be 27,000 -12,000? I was following but I don't understand why we add 12000 to 27000 if dividends are a decrease in equity Cant cash dividends be paid from retained equity? Causing it to decrease? Can someone help me understand please?
Comment from : @simonealbritton1556


@canabxaashi353
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