ash $ 18,500 Beginning inventory 18,920 (215 units @ $88) Common stock 15,400 Retained earnings 22,020 The following five transactions occurred in Year 2: First purchase (cash) 120 units @ $90 Second purchase (cash) 200 units @ $98 Sales (all cash) 365 units @ $196 Paid $15,750 cash for salaries expense Paid cash for income tax at the rate of 25 percent of income before taxes