There are several ways to examine how profitable a company is by using its income statement and accounting balance sheet. Most of the time, the number itself may not mean a lot unless it is compared ...

After companies deduct the costs of business from sales revenue, retained earnings represent the remaining funds on financial statements. However, those earnings do not necessarily go straight to ...

“Phantom income” represents a challenge for taxpayers and businesses in tax planning and financial management—but its consequences may be worse for payors of alimony and child support. Although the ...

Net income - dividends + retained income from prior years = retained income Let's assume, for instance, that Company X ends its fiscal year with $10 million in retained income on the books. Now let's ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Amy is an ACA and the CEO and founder of OnPoint Learning, a financial training ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...