Question 6: Alibaba Group's Consolidated Balance Sheets in its IPO Prospectus report that its retained carings went from a

positive balance in the year ended March 31, 2012 to a large negative balance in the year ended March 31, 2013.

a. Generally speaking, what are the factors that impact a company's retained earnings?

b. Using the information from Alibaba Group's Consolidated Financial Statements in its IPO Prospectus, provide possible explanations for factors that contributed to the wild fluctuations in retained earnings and whether this should cause an investor concern.