The retained earnings are affected by the net income or loss or any amount paid to the shareholders as dividends. The retained earnings balance as of December 31, 2016 shall be calculated as follows:
Retained earnings, December 31, 2015 $ 313,700
Less: Net loss for the year ended December 31, 2016 -$4,850
Less: Dividends declared and paid in 2016 -$17,000
Retained earnings, December 31, 2016 $291,850
Hence, the retained earnings balance as of December 31, 2016 is <u>$291,850</u>
