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What are the retained earnings?

Retained earnings correspond to the company's accumulated net profit less the total dividends paid and the portion of earnings allocated to reserves. They represent the capital accumulated throughout the life of the company and appear on the liabilities side of the balance sheet under shareholders' equity.

The Business Plan Shop's software does not allow the payment of dividends if the accumulated results are negative. On the other hand, it does not perform a test on the minimum amount of legal and statutory reserves.

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