[The Following Information Applies to the Questions Displayed Below

question 75

Multiple Choice

[The following information applies to the questions displayed below.]

Sanchez Company engaged in the following transactions during Year 1:

1) Started the business by issuing $42,000 of common stock for cash.
2) The company paid cash to purchase $26,400 of inventory.
3) The company sold inventory that cost $16,000 for $30,600 cash.
4) Operating expenses incurred and paid during the year, $14,000.

Sanchez Company engaged in the following transactions during Year 2:

1) The company paid cash to purchase $35,200 of inventory.
2) The company sold inventory that cost $32,800 for $57,000 cash.
3) Operating expenses incurred and paid during the year, $18,000.

Note: Sanchez uses the perpetual inventory system.

-What is Sanchez's gross margin for Year 2?

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Definitions:

Career Happiness

A state of well-being related to one's profession, characterized by feelings of satisfaction and accomplishment.

Sense of Competence

The feeling or belief in one's own ability to accomplish tasks and handle situations effectively, contributing to self-confidence and well-being.

Flexible Working Hours

An employment structure that allows employees to choose their working hours within agreed limits, promoting work-life balance and often increasing job satisfaction.

Empty Nest

A phase in a parent's life where their children have grown up and left home, often leading to changes in the parents' lifestyle and emotional state.