Reference no: EM132485594
Sanchez Company engaged in the following transactions during Year 1:
Point 1) Started the business by issuing $11,900 of common stock for cash.
Point 2) The company paid cash to purchase $7,300 of inventory.
Point 3) The company sold inventory that cost $4,700 for $9,400 cash.
Point 4) Operating expenses incurred and paid during the year, $4,200.
Sanchez Company engaged in the following transactions during Year 2:
Point 1) The company paid cash to purchase $10,200 of inventory.
Point 2) The company sold inventory that cost $8,900 for $16,000 cash.
Point 3) Operating expenses incurred and paid during the year, $5,200.
Note: Sanchez uses the perpetual inventory system.
Question 1) Find Sanchez's gross margin for Year 2?
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