Hardy Company Is a Wholesale Electronics Distributor Given This Information, If Hardy Company's Gross Margin Is 30

Hardy Company is a wholesale electronics distributor. On December 31, 2011, it prepared the following partial income statement:
$\begin{array}{lr}\text { Grosss sales.}&\$600,400\\\text { Sales discounts}&400\\\text {Net sales }&\$600,000\\\text {Cost of goods sold: }&\\\text {Beginning inventary . }&\$200,000\\\text { Net purchases}&300,000\\\end{array}$

Given this information, if Hardy Company's gross margin is 30 percent of net sales, what is the correct ending inventory balance?

A) $80,000
B) $120,000
C) $180,000
D) $500,000