When I calculate retained earnings, is it the sum of all net income / losses that the business has been in operation? or is it only for the fiscal year? For example:

Year Ending

Sorry, hit enter by accident:

Year ending:
2008 net income $2,500,000
2009 net income $1,750,000
2010 net income $1,300,000
2011 net income $(2,200,000)

Dividends paid out = $1,200,000 paid out in October 2008

therefore would the retained earnings be: $3,350,000 - dividends $1,200,000 = $2,150,000?