Robert Coles Sun, Jan 13, 2013 @ 07:01 AM. If Internet memes have taught us anything, it's that there are plenty of ways to waste time, be it at work, at home on the couch, or on Facebook at a restaurant.
Retained earnings and stockholders' equity are decreased by a per-share cash dividend that is paid on common and preferred shares of stock, and not on shares of repurchased or treasury stock.
Retained earnings are calculated by adding net income and subtracting dividends from the balance of retained earnings at the beginning of the period. Retained Earnings = $5000 + $4000 - $2000 = $7000. Essentially, the statement of retained earnings is affected by any transaction that affects net income and dividends.