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The following data are for Montgomery Retail Outlet Stores. The account balances (in thousands) are for 2011.
Marketing and advertising costs $ 24,000Merchandise inventory, January 1, 2011 45,000Shipping of merchandise to customers 2,000Building depreciation $ 4,200Purchases 260,000General and administrative costs 32,000Merchandise inventory, December 31, 2011 52,000Merchandise freight-in 10,000Purchase returns and allowances 11,000Purchase discounts 9,000Revenues 320,000
Required
1. Compute (a) the cost of goods purchased and (b) the cost of goods sold.
2. Prepare the income statement for 2011.
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