If you’ve prepared this statement before, you’ll carry over the last period’s beginning balance. If this is your first statement of retained earnings, your starting balance is… Read more »

Since you’re thinking of keeping that money for reinvestment in the business, you forego a cash dividend and decide to issue a 5% stock dividend instead. Calculating… Read more »

In addition, SG&A expenses do not offer any insight into the direct costs of producing goods or services, which for some businesses can be a significant factor…. Read more »

Although net income may result in positive cash flows, fast growth can result in negative cash flows if the cash generated from operations is tied up in… Read more »

While this method might seem counterintuitive to some, it offers distinct advantages, especially in specific economic conditions. For example, if a corporation followed the LIFO process flow,… Read more »