Does the retained earnings figure shown on a firms balance sheet necessarily have any relationship to the

Question:

Does the retained earnings figure shown on a firm’s necessarily have any relationship to the amount of retained earnings the firm can generate in the coming year? Explain.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...