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: $4,100 Net sales: $41,000 Net purchases: $42,000 The company's gross margin ratio is 15%. Using the gross profit method, the cost of goods sold would be:

Multiple Choice $21,550. $25,650. $5,100. $34,850. $4,100.