When does CAPEX come in?

Hello monkeys, I have a question that I can't find a definitive answer to. I'm studying how the three major financial statements are connected.

I have Net Income = Revenue-COGS-SG&A-Operating expenses-D&A-I&T

To my knowledge, Net Income flows into CFS in CF from operation, where

FCFF= NI+I(1-t)+D&A+non-cash expenses-CAPEX - increase in NWC or FCFF=EBIT(1-t)+D&A+non-cash expenses-CAPEX - increase in NWC

I understand up to this point. What I don't understand is, why the (Net Income(from I/S)-Dividend) flows into Retained earnings in B/S.

Shouldn't we also subtract CAPEX from (Net Income-Dividend), and add it to retained earnings rather than (Net Income-Dividend)? Since money spent on CAPEX isn't available to shareholders, it's hard to make sense of why Net Income directly flows into retained earnings on B/S. I'd much appreciate clarification on this!