Take note of the Accumulated Deficit of $849 on page 131. This is the beginning retained earnings for January 1, 2017. Please review the Retained Earnings Statement on page 132 and notice the $849 has brackets which represents a deficit. It's very important to understand how this happens. Each year the net income or net loss is transferred through the closing process to retained earnings and dividends (if any) are deducted to arrive at ending retained earnings for the period. Also keep in mind that the net income or net loss reported based on GAAP Accrual accounting will not agree to the increase or decrease in cash for the year. 1. What is Groupon's ending retained earnings balance? Take a minute and review Groupon's Balance Sheet. The Balance sheet is also known as the Statement of Financial Condition. It's a snapshot of the financial position of the firm at any point in time. 2. Turn to page 52 and tell me how much working capital Groupon has. 3. Also calculate the current ratio: