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: $4,000 Net sales: $80,000 Net purchases: $78,000 The company's gross profit ratio is 25%. Using the gross profit method, the cost of goods sold would be: Multiple Choice $60,000. $20,000. $58,500. $63,000. $19,500