Below provides an example of a retained earnings note to the forecasted financial statements. Retained Earnings Account: The following items were used to calculate "THE INCORPORATED COMPANY's" December 31, 200X and 200Y ending retained earnings account. The statement of retained earnings is a financial statement prepared by corporations that details changes in the volume of retained earnings over some period. Retained earnings are profits held by a company in reserve in order to invest in future projects rather than distribute as dividends to shareholders. Owner withdrawals or distributions reduce retained earnings as do net losses. Retained earnings appear on the balance sheet as a component of owner's equity. Profits in one period flow through the operating section of the cash flow statement on their way to the balance sheet in the next period.

The retained earnings account on the balance sheet is said to represent an "accumulation of earnings" since net profits and losses are added/subtracted from the account from period to period. Retained Earnings are part of the "Statement of Changes in Equity". The general equation can be expressed as following: b.The retained earnings balance shown on the balance sheet must agree with the ending retained earnings balance shown on the statement of retained earnings c. The balance sheet summarizes the net changes in specific account balances over a period of time d. the balance sheet reports the amount of assets, liabilities, and stockholders' equity of ... Jan 29, 2015 · This statement presents the balance sheet and statement of retained earnings for MBA 601.