hompson TV and Appliance reported the following in its 2016 financial statements:

	2016
Sales	$420,000
Cost of goods sold:
Inventory, January 1	82,000
Net purchases	340,000
Goods available for sale	422,000
Inventory, December 31	86,000
Cost of goods sold	336,000
Gross profit	$ 84,000

Thompson's 2016 gross profit ratio is:

25%.

19%.

20%.