effects of the two types of actions on other aspects of stock equity. Explain the differences to the directors. 9. What is the purpose of a retained earnings restriction? Identifvyth Ei Explain requirement possible causes of retained earnings restrictions. plain. to the corris a cash di. 10. How are retained earnings restrictions generally reported nthe 10. How are retained earnings restrictions generally reported in the inancial statements S 11. Rafy Furcal believes that both the beginning and ending balances in retained earnings are shown in the stockholders' equity section. Is re Rafy correct? Discuss. cember 31, 12. What is the formula for the payout ratio? What does it indicate? i 5100. 13. Dean Percival, who owns many investments in common stodk common says, "I don't care what a comnany's net income is The stack nrice