Given Data:

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: $280,000$

Required:

Compute: $($a$)$ The cost of goods purchased, and

$($b$)$ The cost of goods sold.

Prepare the income statement for $2017.$