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 $7,530 cash 2) Paid cash to purchase $5,010 of inventory 3) Sold inventory that cost $3,015 for $7,280 cash 4) Incurred and paid operating expenses, $251 Schumacher Company engaged in the following transactions during 2015: 1) Paid cash to purchase $5,825 of inventory 2) Sold inventory that cost $7,030 for $15,210 cash 3) Incurred and paid operating expenses, $502 The amount of Retained Earnings at December 31, 2014 is:

$11,692.

$4,014.

$11,195.

$4,265.