Cost of Goods Purchased, cost of goods sold and income statement. The following data are for Montgomery Retail Outlet Stores. The account balances (in thousands) are for 2011:
Marketing & Advertising 24,000
Merchandise inventory, January 1, 2011 45,000
Shipping to customers 2,000
Building Depreciation 4,200
Purchases 260,000
General and Admin Costs 32,000
Merchandise inventory December 31, 2011 52,000
Merch Freight-In 10,000
Purchases returns and allowances 11,000
Purchase Discounts 9,000
Revenue 320,000
1. Compute the cost of goods purchased and the cost of goods sold
2. Prepare the income statement for 2011