On March $31$ a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available:

Beginning inventory, January $1$:$$4000$

Net sales: $$40,000$

Net purchases: $$41,000$

The company's gross margin ratio is $15\%.$ Using the gross profit method, the cost of goods sold would be:

$$34,000.$

$$21,000.$

$$4000.$

$$25,000.$

$$5000.$