The following data are for Montgomery Retail Outlet Stores The
The following data are for Montgomery Retail Outlet Stores. The account balances (in thousands) are for 2014.
Marketing and advertising costs .......... $ 48,000
Merchandise inventory, January 1, 2014 ........ 90,000
Shipping of merchandise to customers ........ 4,000
Building depreciation 8,400 Purchases ....... 520,000
General and administrative costs .......... 64,000
Merchandise inventory, December 31, 2014 ....... 104,000
Merchandise freight-in ............. 20,000
Purchase returns and allowances ......... 22,000
Purchase discounts ............... 18,000
Revenues .................. 640,000

Required
1. Compute
(a) The cost of goods purchased
(b) The cost of goods sold.
2. Prepare the income statement for 2014.

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