PetMeds Retained Earning Analysis

PetMeds Retained Earning Analysis
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PetMeds Retained Earning Analysis
Retained earnings are the percentage of net revenue that remains for the corporation after dividend payments to stockholders. Retained earnings, also referred to as earnings surplus, are reserves that management can use to make new investments in the firm (Kwon, 2019). Profits give executives and business owners flexibility in how to spend any extra money they have earned. Although this revenue is frequently distributed to shareholders, it can also be added to the business to spur further expansion (Papanastasopoulos et al., 2021). Retained earnings are the funds that are not distributed to shareholders.
As the projected net income for PetMeds remained constant at $257 in all three years and no dividend was paid out, the result is the retained earnings stand at $257 in all three years. These figures demonstrate an excess of earnings that can be distributed to shareholders or injected into the business. According to PetMeds' p...