Rudolph Corporation showed retained earnings of $400,000 on its balance sheet for 2016.  In 2017, the company’s earnings per share (EPS) were $3.00 and its dividends paid per share (DPS) were $1.00.  The company has 200,000 shares of stock outstanding.  What will be the level of retained earnings on the company’s 2017 balance sheet?

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Operating Cash Flows

A cash flow statement (CFS) helps the company to know the amount of cash at its disposal, the activities that lead to earning cash, and the activities which require cash expenditure for a particular period. The statement represents the liquidity of the company.