The following stockholders' equity section of Petal Pusher Company's balance sheet appeared at December 31, 2015.
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Common stock, $1 par value, 200,000 shares issued
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$ 200,000
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Additional paid-in capital-common
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800,000
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Retained earnings
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450,000
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Total stockholders' equity
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$1,450,000
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Answer the following:
Has the company been profitable since its inception? How do you know?
What does the balance in retained earnings represent?