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Statement of Owner's Equity

6 May, 2015 - 17:39

The statement of owner's equity records the changes in the value of owner's equity. Additional investments and net profits increase owner's equity. Dividend payments, owner withdrawals, and net losses decrease owner's equity. Net profits or losses are derived from the income statement. The statement of owner's equity (or retained earnings statement for corporations) is the connecting link between the income statement and the balance sheet.