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Day 28

Retained Earnings

Watch the video and scroll down for your homework.

Your Homework

Take a look at Meta's 2022 10-K (or "annual report") and locate their Balance Sheet.

1. What is Meta's retained earnings for period ending Dec 31, 2022?
2. In your own words, what does retained earnings represent and what decision does management have to make with retained earnings?

Answers

1. $64,799M
2. Retained Earnings is the profit of the business from operating the company.  
Management can decide whether to keep Retained Earnings inside the company and use it to grow the business OR distribute it back to the shareholders of the business and those payments are called dividends.

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