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Ending retained earnings = Beginning retained earnings + Net income - Dividends

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Accounting equations
t; because it is typically found on the last line of a company's income statement. Balance sheets and income statements are interrelated through the retained earnings component of owners' equity. <span>Ending retained earnings = Beginning retained earnings + Net income - Dividends The following expanded accounting equation, which is derived from the above equations, provides a combined representation of the balance sheet and income statement: &


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