Earnings represents the increase in stockholders equity

Reference no: EM131093576

We have learned that net income is an increase in owners' equity resulting from profitable operations. Previously, we learned when a business is organized as a corporation, retained earnings represents the increase in stockholders' equity that has accumulated over the years as a result of profitable operations. Thus, net income for any one year should explain a large part of the change in retained earnings from the beginning of the year to the end. Go tohttps://www.jcpenney.com (Links to an external site.)

Find net income for most recent annual report on the companys 10-K. Now compute the difference between retained (reinvested) earnings at the beginning of the year and at the end. What are reasons for difference? Use excel file attached to complete.

Reference no: EM131093576

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