Answer:
Undrawn Profit (Retained Income) = Net Income - Dividends
Step-by-step explanation:
Undrawn profit, also known as retained income or retained earnings, is calculated by subtracting the total dividends declared and paid to shareholders from the net income for the year. The formula for calculating undrawn profit is:
Undrawn Profit (Retained Income) = Net Income - Dividends
Net income is the total income earned by a company during a specific period, such as a year, after deducting all expenses and taxes. Dividends are the payments made to shareholders as a distribution of profits.