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.