I don't think I calculated the COGS or COGP because there should be a loss as stated in row 45. I'm also a bit confused on what to include in them.

1 A B D E F G H T J An Introduction to Cost Terms and Purposes Free work cells 2 Cost of goods purchased, cost of goods sold, and income statement Answer cells 3 4 The following data are for Arizona Retail Outlet Stores. The account balances (in thousands) are for 2017. 5 6 Account Balance 7 Depreciation on store fixtures 9,660 8 General and administrative costs 73,600 9 Marketing and advertising costs $55,220 10 Merchandise freight-in 23,000 11 Merchandise inventory, December 31, 2017 119,600 12 Merchandise inventory, January 1, 2017 103,500 13 Purchase discounts 20,700 14 Purchase returns and allowances 25,300 15 Purchases 598,000 16 Revenues 736,000 17 Shipping of merchandise to customers 4,600 18 19 Answer cells must remain in the same location so do not insert/delete columns or rows in the file. Numeric answers must include a formula or reference so do not hard enter the 20 21 1a. Compute the cost of goods purchased. 22 23 Cost of goods purchased $558,900 24 25 1b. Compute the cost of goods sold. 26 Answer cells must remain in the same location so do not insert/delete columns or rows in the file. Numeric answers must include a formula or reference so do not hard enter the 27 28 Cost of goods sold $581,900 29 30 2. Prepare the income statement for 2017 31 32 Arizona Retail Outlet Stores 33 Income Statement 34 Year Ended December 31, 2017 35 (in thousands) 36 Revenues $736,000 37 Cost of goods sold -581.900 38 Gross Margin $154,100 39 Operating costs: 40 Shipping of mercahndise to customers $4,600 41 marketing and advertising $55,2201 42 Administrative and general costs $73,600 43 depreciation on store fixtures $9,660 44 Total operating costs 143,080 45 Operating income (loss) 46 47 48 49 CH2A +