Alibaba Groups Consolidated Balance Sheets in its IPO Prospectus (p. F-6) report that its retained earnings went from a positive balance in the year ended March 31, 2012 to a large negative balance in the year ended March 31, 2013, and to a large positive balance in the year ended March 31, 2014. a. Generally speaking, which factors affect companies retained earnings?

b. What is the reason for the fluctuation in Alibabas retained earnings? Are these fluctuations cause for investor concerns?