At the beginning of the year, Ayayai had an inventory of $580000. During the year, the company purchased goods costing $2400000. If Ayayai reported ending inventory of $700000 and sales of $3720000, their cost of goods sold and gross profit rate would be

Select answer from the options below

$2020000 and 38.71%.

$1700000 and 61.29%.

$2280000 and 61.29%.

$2280000 and 38.71%.