{The following information applies to the questions displayed below) Sanchez Company engaged in the following transactions during Yeart 1) Started the business by issuing $11.900 of common stock for cash. 2). The company paid cash to purchase $7.300 of inventory 3) The company sold inventory that cost $4,700 for $9.400 cash. 4) Operating expenses incurred and paid during the year. $4,200. Sanchez Company engaged in the following transactions during Year 2 1) The company paid cash to purchase $10,200 of Inventory. 2) The company sold inventory that cost $8,900 for $16,000 cash. 3) Operating expenses incurred and paid during the year. $5,200. Note: Sanchez uses the perpetual inventory system What is Sanchez's gross margin for Year 2? Multiple Choice $5,800 $8.900 $7100 $1.900 Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $11.900 of common stock for cash. 2) The company paid cash to purchase $7,300 of inventory. 3) The company sold inventory that cost $4,700 for $9.400 cash. 4) Operating expenses incurred and paid during the year. $4,200. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $10,200 of inventory 2) The company sold inventory that cost $8.900 for $16,000 cash. 3) Operating expenses incurred and paid during the year, $5,200. Note Sanchez uses the perpetual inventory system. "What is the amount of inventory that will be shown on the balance sheet at December 31. Year 2? Multiple Choice $18.400 $1,300 $3,900 58,600