At the beginning of 2015, Midway Hardware has an inventory of $300,000. Because sales growth was strong during 2015, the owner wants to increase inventory on hand to $350,000 at December 31, 2015. If net sales for 2015 are expected to be $1,800,000, and the gross profit rate is expected to be 20%, compute the cost of the merchandise the owner should expect to purchase during 2015.

$1,790,000.

$1,440,000.

$1,490,000.

$1,800,000.