On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $5800Net sales: $58,000Net purchases: $59,000 The company's gross margin ratio is 15%. Using the gross profit method, the cost of goods sold would be:
A. $6800.
B. $36,700.
C. $49,300.
D. $5800.
E. $30,900.
Answer: C
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What will be an ideal response?