[The following information applies to the question displayed below Sanchez Company engaged in the following transactions during 2015: 1) Started the business by issuing $13,900 of common stock for cash. 2) The company paid cash to purchase $8,300 of inventory. 3) The company sold inventory that cost $5,700 for $11,900 cash. 4) Operating expenses incurred and paid during the year, $5,200. Sanchez Company engaged in the following transactions during 2016: 1) The company paid cash to purchase $12,200 of inventory. 2) The company sold inventory that cost $9,900 for $18,500 cash. 3) Operating expenses incurred and paid during the year, $6,200. Note: Sanchez uses the perpetual inventory system