Requirements 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. 2. Prepare the income statement for 2020. Requirement 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. Data Table (a) Begin by completing the schedule of cost of goods purchased. Mama Retail Outlet Stores $ Schedule of Cost of Goods Purchased 54,000 For the Year Ended December 31, 2020 (in thousands) 94,000 Purchases 521000 10,000 10000 8,800 Add: Shipping of merchandise to customers 531000 Marketing and advertising costs Merchandise inventory, January 1, 2020 Shipping of merchandise to customers Depreciation on store fixtures Purchases General and administrative costs Merchandise inventory, December 31, 2020 Merchandise freight-in Purchase returns and allowances Purchase discounts 521,000 63,000 Deduct: Purchase returns and allowances 25000 101,000 21,000 25,000 Purchase discounts 22000 47000 484000 Cost of goods purchased 22,000 Revenues 690,000