At the beginning of the year, Midtown Athletic had an inventory of $400,000. During the year, the company purchased goods costing $1,600,000. If Midtown Athletic reported ending inventory of $600,000 and sales of $2,000,000, their cost of goods sold and gross profit rate must be:
a) $1,000,000 and 50%
b) $1,400,000 and 30%
c) $1,000,000 and 30%
d) $1,400,000 and 70%