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how much net income should go into retained earnings?
if I make money and put it into retained earnings , then how big can retained earnings get? is there a limit? my professor said that you can't just put money into retained earnings, it has to function as either buying assets and or paying expenses. it can't sit there and just gain interest. so is there formulas to determine when to pay bigger bonuses and spend(move) money? what are they called? what all do I need to know about this subject?
1 Answer
- troLv 77 years ago
for one thing retained earnings do not apply to your personal finance they would only apply to a business operation
