The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: Cash $19,900 Beginning inventory 18,245 (205 units e $89 ) Common stoek 14,900 Retained earnings 23,245 The following five transactions occurred in Year 2: First purchase (cash) 120 units $91 Second purchase (cash) 200 units @ $99 Sales (all cash) 355 units @ $193 Paid $14,700 cash for salaries expense. Paid cash for income tax at the rate of 25 percent of income before taxes