Newark Company has provided the following information:

Cash sales, $590,000

Credit sales, $1,490,000

Selling and administrative expenses, $470,000

Sales returns and allowances, $104,000

Gross profit, $1,500,000

Increase in accounts receivable, $69,000

Bad debt expense, $47,000

Sales discounts, $57,000

Net income, $1,030,000

How much is Newarks cost of sales?

$419,000.

$580,000.

$466,000.

$350,000.