At the Beginning of the Year, Uptown Athletic Had an Inventory

Multiple Choice

At the beginning of the year, Uptown Athletic had an inventory of $400,000. During the year, the company purchased goods costing $1,500,000. If Uptown Athletic reported ending inventory of $500,000 and sales of $2,000,000, their cost of goods sold and gross profit rate would be

A) $1,000,000 and 70%.
B) $1,400,000 and 30%.
C) $1,000,000 and 30%.
D) $1,400,000 and 70%.