In January, a company bought $50,000 worth of inventory which was paid for in February. The company then sold the entire inventory in February for $70,000 on account. The customer paid in March. Which of the following is correct? Assume the company uses a perpetual inventory system. Equity increased in March by $20,000 with a gross profit margin of 40% Equity decreased in January by $50,000 increased and increased in February by $20,000 Equity increased in February by $20,000 with a gross profit margin of 28.5% Equity increased in March with a gross profit of $20,000 and a gross profit margin of 28.5%