USA PIC & Retained Earnings


Joined
Aug 1, 2019
Messages
1
Reaction score
0
Country
United States
I am looking over a balance sheet for school, can someone explain how additional paid in capital can be positive on a balance sheet and the retained earnings is a negative value. I understand how each can positive or negative, but would the PIC be from investing capital, while the retained earning is just a cumulative loss? I was also considering the positive PIC was taken as a shareholder distribution, causing retained earnings to be at a negative now....is that possible?

Thanks
 
Ad

Advertisements

bklynboy

VIP Member
Joined
Oct 12, 2011
Messages
573
Reaction score
107
Country
United States
PIC is always positive meaning it cant be below 0 since it represents the amount of capital paid in by he shareholders. Retained earnings represents accumulated profits (or losses) of the company and is negative when the company has cumulative net losses. Doesnt impact the PIC which is solely what the y contributed as capital. They are not related.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Retained Earnings 10
Retained earnings 6
Retained Earnings ?? 2
Retained earnings 3
Retained Earnings 4
Retained Earnings 5
Retained Earnings 1
Dividends -No Retained Earnings 3

Top