=+2-36 KK Calculating cost of goods purchased, cost of goods sold and income statement OBJECTIVE 5 The following data are for Rose Retail Outlet Store. The account balances (in thousands) are for 2013.

Marketing and advertising costs $24 000 Retail inventory, 1 January 2013 45 000 Shipping of inventory to customers 2 000 Building depreciation 4 200 Purchases 260 000 General and administrative costs 32 000 Retail inventory, 31 December 2013 52 000 Retail freight-in 10 000 Purchase returns and allowances 11 000 Purchase discounts 9 000 Revenues 320 000 Required 1 Calculate:

(a) the cost of goods purchased, and

(b) the cost of goods sold.