Schumacher Company uses the perpetual inventory system, and it engaged in the following transactions during 2014: 1) Started the business by issuing common stock for $8,040 cash 2) Paid cash to purchase $5,180 of inventory 3) Sold inventory that cost $3,270 for $7,790 cash 4) Incurred and paid operating expenses, $268 Schumacher Company engaged in the following transactions during 2015: 1) Paid cash to purchase $6,250 of inventory 2) Sold inventory that cost $7,540 for $16,230 cash 3) Incurred and paid operating expenses, $536 The amount of Retained Earnings at December 31, 2014 is:

$11,960.

$12,406.

$4,520.

$4,252.

6. 10.00 points Schumacher Company uses the perpetual inventory system, and itengaged in the following transactions during 2014 1) Started the business by issuing common stock for $8,040 cash 2) Paid cash to purchase $5.180 of inventory 3) Sold inventory that cost $3,270 for $7,790 cash 4) Incurred and paid operating expenses, $268 Schumacher Company engaged in the following transactions during 2015 2) Sold inventory that cost $7,540 for$16,230 cash 3) Incurred and paid operating expenses, $536 The amount of Retained Earnings at December 31, 2014 is: O $11,960 O $12,406. O $4,520 O $4,252