In: Accounting
In the statement of retained earnings, you use the net income (which was calculated in the income statement) to calculate the ending balance of retained earnings which is a part of the balance sheet.
.
.
COMPANY NAME | |
Statement of Retained Earnings | |
Beginning balance of retained earnings | XXX |
Add: Net income [Taken From the Income Statement] | XXX |
XXX | |
Less: Dividends [if any] | XXX |
Ending balance of retained earnings [To be used in the balance sheet] | XXX |