At the beginning of the year, Ayayai Athletic Supply had an inventory of $569200. During the year, the company purchased goods costing $2400000. If the company reported ending inventory of $700000 and sales of $3720000, their cost of goods sold and gross profit rate would be

$1700000 and 61%.

$2269200 and 61%.

$2269200 and 39%.

$1700000 and 39%.