Closing retained earnings as reported on the balance sheet represent a company's net income from its formation, less the cumulative dividends declared to-date.

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Retained earnings represent the accumulated profits of a company that have not been distributed as dividends, and the closing retained earnings on the balance sheet is calculated by subtracting the cumulative dividends declared to-date from the net income of the company from its formation.

Closing Retained Earnings as Reported on the Balance Sheet Represent