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

(a) Calculate the cost of goods purchased by completing the schedule. (If a box is not used in the schedule, leave the box empty; do not select a label or enter a zero.)

Miguel Department Store
Schedule of Cost of Goods Purchased
For the Year Ended December 31, 2017 (in thousands)
Purchases			157000
Add:	Transportation-in		6000
Deduct:
Cost of goods purchased

(b) Next calculate the cost of goods sold by completing the following schedule.

Miguel Department Store
Schedule of Cost of Goods Sold
For the Year Ended December 31, 2017 (in thousands)
Cost of goods sold

Requirement 2. Prepare the income statement for

2017.

		Miguel Department Store
		Income Statement
		For the Year Ended December 31, 2017 (in thousands)

$ 39,000 Marketing, distribution, and customer-service costs Merchandise inventory, January 1, 2017 Utilities General and administrative costs Merchandise inventory, December 31, 2017 Purchases Miscellaneous costs Transportation-in Purchase returns and allowances Purchase discounts Revenues 29,000 16,000 45,000 38,000 157,000 4,000 6,000 2,000 7,000 320,000