Inability to be able to react quickly. to new opportunities can cost your. company through loss of business. So it is imperative that your new. data entry system provide for quick. and easy job setup and maintenance.
Cash dividends are profits paid to shareholders. Dividends on common stock are optional, but they are required for preferred stock. If a company issues additional dividend-paying common stock, it must either cut the dividend per share or increase the draw from retained earnings.Companies generally canât cut preferred stock dividends, so issuing new preferred stock will cause retained earnings to fall.Even though retained earnings decrease because of additional dividends, stockholdersâ equity might increase because the company raises cash when it issues new shares.t includes accounts for equity -- common and preferred stock -- and retained earnings, the accumulated profits of the corporation. The accounting equation requires that stockholders' equity be equal to assets minus liabilities.
Increase Retained Earnings. As revenues increase, all other things being equal, net income increases. As net income increases, retained earnings increase by the amount of the net income less any cash dividends that are paid. If retained earnings increase, shareholdersâ equity increases by the same amount. For example, if a companyâs 2013 net income is $1 million and no cash dividends are paid, retained earnings increases by $1 million and stockholdersâ equity increases by the same amount.