Chapter 2, Problem 2.34P

Computing cost of goods purchased and cost of goods sold. The following data are for Marvin Department Store. The account balances (in thousands) are for 2017.

Marketing, distribution, and customer-service costs	$ 37,000
Merchandise inventory, January 1, 2017	27,000
Utilities	17,000
General and administrative costs	43,000
Merchandise inventory, December 31, 2017	34,000
Purchases	155,000
Miscellaneous costs	4,000
Transportation-in	7,000
Purchase returns and allowances	4,000
Purchase discounts	6,000
Revenues	280,000

1. 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold.

Required

1. 2. Prepare the income statement for 2017.