Which of the following is NOT typically included in retained earnings calculations?

Retained earnings represent the accumulated net income of a company that is retained for reinvestment in the business and not distributed to shareholders as dividends. In calculating retained earnings, several components are considered.

Net income for the period is included because it directly affects the accumulation of retained earnings, reflecting the earnings generated by the company during the given period. Declared dividends are also included, as they are subtracted from retained earnings since they represent a distribution of profits to shareholders. Prior retained earnings represent the previous balance of retained earnings carried into the current period, forming the basis for the current calculation.

Additional capital investments, however, do not factor into retained earnings calculations. These investments typically refer to contributions made by shareholders or owners to the company's equity accounts, rather than profits generated and retained in the business. By nature, retained earnings focus on the company's accumulated net income and its reinvestment rather than new capital contributions. Thus, additional capital investments are not included in the retained earnings calculations.