Retained Earnings Cash Flow Statements show the financial history of a business from one period to another. They provide insight into how and why a business has made money and where and when the money is being reinvested. This statement measures the net income or profit and loss of a business, the amount of dividends paid out, the change in equity shares outstanding, and the increase or decrease of retained earnings. Retained earnings are those that are left over after paying dividends to shareholders and reinvesting profits back into the company for growth and development purposes. Additionally, this statement can also be used to calculate how much cash flow is coming in and going out of the business; showing investors how well the business is performing.