2-29 Computing cost of goods purchased and cost of goods sold. The following data are for Marvin Department Store. The account balances (in thousands) are for 2011.

1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. Required

2. Prepare the income statement for 2011.

Marketing and advertising costs	$24,000
Merchandise inventory, January 1, 2011	45,000
Shipping of merchandise to customers	2,000
Building depreciation	$4,200
Purchases	260,000
General and administrative costs	32,000
Merchandise inventory, December 31, 2011	52,000
Merchandise freight-in	10,000
Purchase returns and allowances	11,000
Purchase discounts	9,000
Revenues	320,000