I sent this in before I don't think it was answered correctly. I think they left out the freight out part when crunching the numbers.

The income statement of Miller, Inc. includes the items listed below. FOR THE YEAR 2018 Net sales $900,000 Gross profit on sales 320,000 Beginning inventory 100,000 Purchase discounts 15,000 Purchase returns and allowances 8,000 Freight-in 10,000 Operating expenses 300,000 Purchases 570,000 Freight out 20,000 ENDING INVENTORY (2') !!! FIND THE ENDING INVENTORY (&) PREPARE THE INCOME STATEMENT ofTIONAL