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 $7,500 cash 2- Paid cash to purchase $5,000 of inventory 3- Sold inventory that cost $3,000 for $7,250 cash 4- Incurred and paid operating expenses, $250 Schumacher Company engaged in the following transactions during 2015: 1- Paid cash to purchase $5,800 of inventory 2- Sold inventory that cost $7,000 for $15,150 cash 3- Incurred and paid operating expenses, $500 The amount of Retained Earnings at December 31, 2015 is:

$4,250. $11,150. $11,650. $6,500.