How to Calculate Retained Earnings?

The formula is A = L + SE. "A" equals assets, "L" equals liabilities, "SE" equals capital stock. So your company has $500,000 in assets, $1,000 in liabilities, and $150, 000 in capital stock you would have 500,000 = 1,000+150,000 your Retained Earnings would be $349,000.
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