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Retained Earning on Income Stetement Form

Retained Earning on Income Stetement Form

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Instructions and help about retained earning on income stetement

hey this is Chris from Mission capital and in today's video I'm going to show you how to build the statement of retained earnings into your financial model so I have another blank three statement model here and typically what I see is that to model out the retained earnings we'll typically take the previous balance so from the prior period and then we add the net income from here so the formula would just be you know equals this here plus the net income which is sort of standard but what I'm doing in this model is actually a little bit different if we take a look at this formula I'm actually linking to another schedule below I'm not referencing the income statement at all what I'm actually referencing here is a statement of retained earnings so let me show you why I do that so let me scroll down to the schedule I'm going to keep all my balance sheet schedules below my three statement models so it's easy to track do

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