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LSDefine

Simple English definitions for legal terms

retained earnings

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A quick definition of retained earnings:

Retained Earnings are the profits a company makes that it doesn't give to its owners (shareholders) as money. Instead, the company keeps the money to use for things like making the business better, buying other companies, or paying off debts. The amount of Retained Earnings is found by adding up all the profits the company has made over time, subtracting any money it has given to shareholders as dividends, and then seeing how much is left. Some companies keep more Retained Earnings than others, depending on what they want to do with the money.

A more thorough explanation:

Retained Earnings are the profits a company has earned but has not paid out as dividends to its shareholders. This means that the company has kept the money for its own use instead of distributing it to its investors.

For example, if a company earns $100,000 in a year and pays out $20,000 in dividends to its shareholders, the remaining $80,000 is considered retained earnings. The company can use this money to reinvest in the business, pay off debt, or fund new projects.

The amount of retained earnings a company has can be calculated by adding the net income (or loss) to the retained earnings from the beginning of the accounting period and then subtracting any cash or stock dividends paid out.

Whether a company chooses to keep more retained earnings or pay out more dividends depends on its goals and the preferences of its shareholders. For example, a stable company with shareholders who prefer dividends may allocate more of its profits to dividends than to retained earnings. On the other hand, a growth-focused company may allocate more of its profits to retained earnings to fund new projects or pay off debt.

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NosyBeagle
11:56
@NemoPropheta: taking it in august. feels like ill never be ready but f it we ball
I think the secret to happiness is fuck it we ball
is one ever truly ready for something? probably not. but fuck it we ball!
12:20
I went ahead and registered for August as well since it was free
12:20
Getting 2 180s back to back is better than one right
ronniedoeslaw
12:26
In all of your research, what minimum LSAT score do you believe gets you into UIC law?
12:27
I remember the last guy on here who was convinced he was gonna get a 180 bc he scored in that range on PTs
12:28
🤐
12:29
ugh someone come rub my bellly
12:33
@esoterica: he wasnt on that grindset mentality. im him
12:34
Im gonna drink so much saratoga water on test day
ParallelAgreeableOrangutan
12:43
@LawOfAchilles: (hiii sorry so slow, am at work) Bloomington is lovely, I loved it as an undergrad and as a 20something non-student.
ParallelAgreeableOrangutan
12:45
If you're outdoorsy, it's nice--obv no coasts or mountains, but two small lakes really close, lots of places you can go on a lowkey hike or camp without paying park fees or anything really
ParallelAgreeableOrangutan
12:47
super bikable, decent food to be had, things to do but not so much that you'll be distracted and never study lol. idk I'm a fan haha, I miss it
lmao I just got the LSAC notif that I'm under review at IU Maurer
ParallelAgreeableOrangutan
13:11
May you have better luck than I did :)
YAYYY JUPITER
@LawOfAchilles: if you like the outdoors, you're gonna love bloomington.
both uiowa and iu have a good reputation, especially with midwestern law firms. their alumni resources are pretty top notch too.
14:11
Hey guys, are any T14 schools doing tours during the summer?
NosyBeagle
14:24
@NemoPropheta: the lsat was free for you? lucky
14:26
who else piss on the floor during their lsat
sloth i gotta know about caesar beans
14:35
@NosyBeagle: yeah you just have to be poor and then they let you take it for free twice
NosyBeagle
14:54
ah ok it's a fee waiver. i think ill do that
NosyBeagle
14:54
the test got more expensive since the last time i took it
NosyBeagle
14:54
smh
15:24
yea if you get tier 1 you get a cas waiver too which is clutch
NosyBeagle
15:28
it is so wack how expensive this whole thing is
NosyBeagle
15:28
im gonna go shake some ass fr
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