On your Balance Sheet after Distribution to Shareholder, it will say “Total Equity.”
Total Equity is made up of Your Original Investment to start the company + Retained Earnings + Current Year Earnings – Distributions you took this year.
If you are taking less money out of your business than it is earning or investing in assets, then you’ll see your total equity number go up each year. You can look at this month by month during a year and see what the net effect of your business performance is relative to any amounts you are taking out in distributions.
Has your company’s Total Equity gone up or down in the last year?
Good morning Larry. Have a great day!