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Kindly note that the retained earnings are affected by only one input out of all that you have given here. Typically speaking, Retained Earnings = Beginning Balance + Net Income – DividendsIn your case, whatever the retained earnings are , they will get reduced by net loss of current year, i.e. by 10103. They will go into negative. Let me show you how.698-10103 = - 9405Note that -- Should a net loss be greater than beginning retained earnings, retained earnings can become negative, creating a deficit.
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