Introduction
Contributed capital is a vital financial metric used to assess a company’s financial health. This HTML calculator makes it easy to determine the contributed capital by simply entering the total equity and retained earnings. Here’s how to use it:
How to Use
- Enter the total equity in dollars.
- Enter the retained earnings in dollars.
- Click the “Calculate Contributed Capital” button to obtain the contributed capital value instantly.
The formula to calculate Contributed Capital is as follows:
Formula
Contributed Capital (CC) = Total Equity (TE) – Retained Earnings (RE)
Now, let’s go through an example to illustrate how to use this calculator.
Example
Suppose a company has a total equity of $50,000 and retained earnings of $20,000. To calculate the contributed capital, you would use the formula:
Contributed Capital (CC) = $50,000 – $20,000 Contributed Capital (CC) = $30,000
So, the contributed capital for this example is $30,000.
FAQ’s
Q: What is contributed capital?
A: Contributed capital represents the total amount of capital contributed by shareholders or investors to a company.
Q: Why is contributed capital important?
A: Contributed capital is important because it shows how much money shareholders have invested in the company, which can be used for growth and expansion.
Q: Can I use this calculator for personal finance?
A: This calculator is primarily designed for business and financial purposes, but you can use it for personal finance calculations if you find it relevant.
Conclusion
The Contributed Capital Calculator simplifies the process of determining the contributed capital of a company. By entering the total equity and retained earnings, you can quickly assess the financial health of your business. Whether you’re a financial analyst, business owner, or investor, this calculator can help you make informed decisions about your investments.