Bookkeeping

Each year, the company essentially gets an interest-free loan on sales on its platform. Working capital represents the amount of short term capital a company needs to run its operations continuously. On the other hand, a company like a retailer probably doesn’t have much in accrued liabilities but might carry […]

Retained earnings (RE) are calculated by taking the beginning balance of RE and adding net income (or loss) and then subtracting out any dividends paid. The decision to retain the earnings or to distribute them among shareholders is usually left to the company management. However, it can be challenged by the shareholders through a […]