To increase the Retained Earnings Account, we need to consider factors that would lead to a positive change in this account. Here are some scenarios that could result in an increase in the Retained Earnings Account:#### Solution By Steps***Step 1: Net Income***When a company generates positive net income, it increases its Retained Earnings. Net income is the total revenue minus total expenses for a period.***Step 2: Dividends***If a company decides not to distribute dividends to shareholders, the Retained Earnings Account will increase. Dividends reduce Retained Earnings.***Step 3: Stock Repurchases***If a company buys back its own shares, it can increase Retained Earnings since it reduces the number of outstanding shares.***Step 4: Asset Sales***Profits from selling assets can also increase Retained Earnings.#### Final AnswerGenerating positive Net Income, not distributing Dividends, buying back Stock, and earning profits from Asset Sales can all lead to an increase in the Retained Earnings Account.#### Key ConceptFactors Increasing Retained Earnings#### Key Concept ExplanationRetained Earnings increase when a company generates profits (Net Income), refrains from paying dividends, buys back its own stock, or earns profits from selling assets. These actions contribute to the growth of the company's retained earnings, reflecting its accumulated profits over time.
