what is a for profit hospital Consciously develop diverse and representative cultures Managing a business's operations, marketing and purchases activities and expense management are just some from the decisions that management needs to deal with. After they have designed a assist the company will then must decide what to do with those profits. Among the choices for using income is: operations, returning cash to shareholders, or keeping profit reserve for future use. In this article we discuss how you can calculate expanding the figure that's reported as retained earnings on balance sheets and presenting a review of why a company would want to keep a reserve. The accounting income maintains the financial capital preservation, namely, the monetary value that only requires the owner to invest is not eroded, the enterprise income exceeds the input value part is the accounting income. Accounting focuses on reporting financial results. The economic benefits insist on physical capital preservation, which can only be confirmed when the actual production capacity of the owner is saved. It is believed that only by maintaining the actual production capacity of the enterprise can the enterprise reproduce smoothly. Physical capital preservation is more meaningful than the income of financial capital preservation, but it is difficult to measure.