Draymond Green, an investment manager at Bay Area Investments, intends to hire a new investment analyst. After conducting initial interviews, Green has narrowed the pool to three candidates. She plans to conduct second interviews to further assess the candidates' knowledge of industry and company analysis. Prior to the second interview, Green asks the candidates to analyze Golden State Corp, a company that manufactures internet networking products. Each candidate is provided Golden's financial information presented in Exhibit 1. Exhibit 1 - Golden State Corp Selected Financial Information (in millions of 5) 2017 2018 2019 48.7 47.2 Net sales Cost of sales Gross profit 50.5 19.5 17.8 18.1 Green asks each candidate to forecast the 2020 income statement for Golden and to outline the key assumptions used in their analysis. The job candidates are told to include an economic outlook for 2020 in their analysis, which assumes nominal GDP growth of 4.3%. Exhibit 2 - Summary of Key Assumptions Used in Candidates' Models Metric Candidate A Candidate B Candidate C Net sales will grow at the Industry sales will grow at the Net sales of 2020 will average annual growth rate in same rate as nominal GDP, but grow 50 basis points Net sales net sales over the 2017-2019 Golden will have a 2 percentage slower than nominal time period. points decline in market share. GDP. 2020 gross margin will be same 2020 gross margin will decline 2020 gross margin will Cost of as the average annual gross as costs increase by expected increase by 20 basis sales margin over the 2017-2019 inflation time period. points from 2019. Based on Exhibits 1 and 2. Candidate C's forecast for cost of sales in 2020 is closest to __