Computing cost of goods purchased and cost of goods sold. The following data are for Max Department Store. The account balances (in thousands) are for 2016. Required: 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. 2. Prepare the income statement for 2016. Marketing, distribution, and customer-service costs Merchandise inventory, January 1, 2016 Utilities General and administrative costs Merchandise inventory, December 31, 2016 Purchases Miscellaneous costs Transportation in Purchase returns and allowances Purchase discounts Revenues $ 27,000 37,000 15.000 33,000 14,000 157.000 3.000 6,000 5,000 4,000 350.000