how to do this

1 An Introduction to Cost Terms and Purposes 2 Cost of goods purchased, cost of goods sold, and income statement 3 The following data are for Arizona Retail Outlet Stores. The account balances (in thousands) are 4 for 2017 5 6 8 Marketing and advertising costs $55,220 7 Merchandise inventory, January 1, 2017 103,500 Shipping of merchandise to customers 4,600 9 Depreciation on store fixtures 9,660 10 Purchases 598,000 11 General and administrative costs 73,600 12 Merchandise inventory, December 31, 2017 119,600 13 Merchandise freight-in 23,000 14 Purchase returns and allowances 25,300 15 Purchase discounts 20,700 16 Revenues 736,000 17 18 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you 19 copy/paste from the Instruction tab you will be marked wrong. 20 21 Requirements 22 1 Compute (a) the cost of goods purchased and (b) the cost of goods sold. 23 2 Prepare the income statement for 2017. 24 a. Check your spelling carefully and do not abbreviate. b. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. 25