A dividend distribution to shareholders, conversely, reduces the company's retained earnings balance and equity. The formula for obtaining the end balance on the statement of equity is: Opening Balance of Equity + Net Income - Dividends +/- Other Changes = Closing Balance of Equity.
The balance sheet provides the values needed in the equity equation: Total Equity = Total Assets - Total Liabilities.
It is calculated by deducting all liabilities from the total value of an asset (Equity = Assets – Liabilities).
Shareholders Equity = Total Assets – Total Liabilities.
It is calculated by subtracting total liabilities from total assets. If equity is positive, the company has enough assets to cover its liabilities. If negative, the company's liabilities exceed its assets.
For a statement, from the “Accounts” menu option, click “Statement.” Each is printable. Are there limits to the types of transfers I can do with Digital Banking?
Shareholders' Equity = Total Assets – Total Liabilities The above formula is known as the basic accounting equation, and it is relatively easy to use.