Charting How Profits May Be Utilized from a Retained Earnings Statemen

Offering a full range of financial and business services, Samer Majzoub is a Montreal consultant who is active in the Muslim community and has taken a stance against needless acts of violence like the 2016 Orlando, Florida, nightclub shootings. In addition to his public condemnation of the Florida incidents, Samer Majzoub has a strong business focus and excels at project management and accounting.

One critical part of accounting is the generation of financial accounts that include elements such as profit-and-loss statements, balance sheets, cash flow statements, and statements of retained earnings (RE). The latter focuses on that portion of the net income that remains after dividends have been paid out to shareholders. In many cases, this money is used for reinvestment, as a way of spurring further corporate growth.

The RE statement charts the course of RE over a specified time period and reconciles the beginning and ending amounts through the use of figures such as net income. This provides insight to understand the way corporate profits are utilized. Analysts evaluate RE statements in forecasting how a company intends to deploy profits for specific strategic purposes.