The following account balance information is available for XYZ Co., representing all accounts shown on its statement of financial position as of December 31, 20X7:

Cash$4,500,000

Accounts receivable$3,500,000

Marketable securities..$2,000,000

Prepaid insurance...$700,000

Equipment (net)...$9,000,000

Current liabilities (total)..$4,000,000

Long-term liabilities (total).$7,000,000

Common stock.....$2,000,000

Retained earnings?

What is XYZ Co.s retained earnings balance on December 31, 20X7?

a.$6,000,000.

b.$6,700,000.

c. $10,700,000.

d. $13,700,000.