FIND AND CLARIFY HOW TO FIND REVENUEThe equation  I have been given for finding Revenue is as follows:RE 12/31=RE 1/1+(Rev-Exp)-DividendsIn this example it is solved by changing the equation from postive RE 1/1 to negative and changing Dividends Declared from negative to positive.  Why is this done, when it goes against the equation listed above.  So tell me WHY each step is done. Here is an example of answer I have already been givenRetained earnings at the end of any financial period is computed by adding the opening balance and profits earned during the period less diviends declared/usage of retained earnings.Closing Retained Earnings=Opening Retained Earnings+Profits Earned-Dividends declared.Opening retained earnings=$8,000Closing Retained earnings=$9,000Dividend declared out of retained earnings=$3,000So, Profits earned during the period= Closing Retained earnings+Dividends declared-Opening Retained Earnings=$9,000+3,000-8,000=$4,000

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Asked Nov 16, 2019
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FIND AND CLARIFY HOW TO FIND REVENUE

The equation  I have been given for finding Revenue is as follows:

RE 12/31=RE 1/1+(Rev-Exp)-Dividends

In this example it is solved by changing the equation from postive RE 1/1 to negative and changing Dividends Declared from negative to positive.  Why is this done, when it goes against the equation listed above.  So tell me WHY each step is done. 

Here is an example of answer I have already been given

Retained earnings at the end of any financial period is computed by adding the opening balance and profits earned during the period less diviends declared/usage of retained earnings.
Closing Retained Earnings=Opening Retained Earnings+Profits Earned-Dividends declared.
Opening retained earnings=$8,000
Closing Retained earnings=$9,000
Dividend declared out of retained earnings=$3,000
So, Profits earned during the period= Closing Retained earnings+Dividends declared-Opening Retained Earnings
=$9,000+3,000-8,000=$4,000

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Expert Answer

Step 1

Revenue:

Revenues are defined as an increase in the fund financial sources rather than from financing sources like inter fund transfers and...

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