I am confused on how to present this in decimal value
Would it be just the negative value of 223 or would it be -125?
1
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Neither. Signed magnitude representation reserves one bit to represent the sign, and the remaining bits make up the value.
In this case:
So the result is -95.
As for your calculation of -125, it appears you got that backwards. 125 is 1111101 in binary. Definitely got your wires crossed there.