Reference no: EM132990647
Question - Sanchez Company engaged in the following transactions during Year 1:
Started the business by issuing $12,300 of common stock for cash.
The company paid cash to purchase $7,500 of inventory.
The company sold inventory that cost $4,900 for $9,900 cash.
Operating expenses incurred and paid during the year, $4,400.
Sanchez Company engaged in the following transactions during Year 2:
The company paid cash to purchase $10,600 of inventory.
The company sold inventory that cost $9,100 for $16,500 cash.
Operating expenses incurred and paid during the year, $5,400.
Required - Sanchez uses the perpetual inventory system. What is Sanchez's gross margin for the Year 2?