The following data are for Carolina Retail Outlet Stores. The account balances (in thousands) are for 2013.

Marketing and advertising costs............ $ 14,000

Merchandise inventory, January 1, 2013....... 33,750

Shipping of merchandise to customers .......1,500

Building depreciation ..............3,150

Purchases ..................195,000

General and administrative costs ..........24,000

Merchandise inventory, December 31, 2013.... 39,000

Merchandise freight- in .............7,500

Purchase returns and allowances ..........8,250

Purchase discounts ...............6,750

Revenues ...................240,000

Required

1. Compute

(a) The cost of goods purchased and

(b) The cost of goods sold.

2. Prepare the income statement for 2013.