At the beginning of 2018, Midway Hardware has an inventory of $420,000. Because sales growth was strong during 2018, the owner wants to increase inventory on hand to $480,000 at December 31, 2018. If net sales for 2018 are expected to be $1,880,000, and the gross profit rate is expected to be 20%, compute the cost of the merchandise the owner should expect to purchase during 2018. Multiple Choice $1,984,000 $1,504,000 $1.564.000 $1.880,000