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.
Determine from your records the amount of dividends you paid during the year. In this example, assume your company paid $5,000 in dividends. Subtract net income from the ending retained earnings balance. Alternatively, add a net loss to ending retained earnings.