On September 30 a company needed to estimate its ending inventory to prepare its third quarter financial statements. The following information is available: Beginning inventory, July 1: $5, 900 Net sales: $59,000 Net purchases: $69, 500 The company's gross margin ratio is 20%. Using the gross profit method, the cost of goods sold would be: $45, 900 $40,000 $16, 400 $47, 200 $5, 900