! Required information (The following information applies to the questions displayed below.] Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $14,500 of common stock for cash. 2) The company paid cash to purchase $8,600 of inventory. 3) The company sold inventory that cost $6,000 for $12,650 cash. 4) Operating expenses incurred and paid during the year, $5,500. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $12,800 of inventory. 2) The company sold inventory that cost $10,200 for $19,250 cash. 3) Operating expenses incurred and paid during the year, $6,500. Note: Sanchez uses the perpetual inventory system. What is the amount of retained earnings that will be shown on the balance sheet at December 31, Year 2? What is the amount of retained earnings that will be shown on the balance sheet at December 31, Year 2? Multiple Choice $3,700 $8,500 $2,550 $15,200