ACC 333 Lecture Notes - Lecture 17: Retained Earnings, Net Income, Financial Statement
3 Jan 2018
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They represent the equity source of finance - Investor / shareholder perspective: investment motivation receive dividend income (tax advantage compared to interest, rights & privileges. Share in proceeds of disposition (pro rata); specified value. Every company, from its inception, develops a history of profits and losses: profits add to retained earnings and losses reduce retained earnings. The value of the business according to its (cid:498)books(cid:499) )t is the difference between a company(cid:495)s total. Calculated from the balance sheet assets and total liabilities. Change in value between two periods in % terms (increase / starting value) x 100 (new - old) / old x 100. Revenue per unit when cogs are removed (profit per unit x q) = (usp x q) - (uc - q) or. Remove q (divide out) and: cm = usp - uc. Mid-level profit point, profit from core business operations. Shows how much of each dollar collected by a company as revenue translates into profit.
