|
Can I use the company's retained earnings? |
|
|
No. Retained earnings represent one of the "owners" of the assets. It is the accumulation of profits that have not been distributed as dividends over the life of a company. These can't be spent again because they have already been spent on plant and equipment, automation, new product lines, acquisitions, etc. This is simply a balance sheet item to account for the increased owner's equity in the company.
|
