Problem

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 $7,740 cash

2) Paid cash to purchase $5,080 of inventory

3) Sold inventory that cost $3,120 for $7,490 cash

4) Incurred and paid operating expenses, $258

Schumacher Company engaged in the following transactions during 2015:

1) Paid cash to purchase $6,000 of inventory

2) Sold inventory that cost $7,240 for $15,630 cash

3) Incurred and paid operating expenses, $516

What is the amount of Retained Earnings at December 31, 2015.