The following stockholders' equity section of Petal Pusher Company's balance sheet appeared at December 31, 2015.

Common stock, $1 par value, 200,000 shares issued	$ 200,000
Additional paid-in capitalcommon	800,000
Retained earnings	450,000
Total stockholders equity	$1,450,000

Answer the following:

Has the company been profitable since its inception? How do you know?

What does the balance in retained earnings represent?