A company has a gross profit rate of 10%. Which of the following is true?
Net Sales are $500,000, and Cost of Goods Sold is $400,000.
Net Sales are $450,000, and Cost of Goods Sold is $500,000.
Net Sales are $500,000, and Cost of Goods Sold is $450,000.
Net Sales are $400,000, and Cost of Goods Sold is $500,000.