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

2. Prepare the income statement for 2017

table - Marketing, distribution, and customer-service costs $30,000 Merchandise inventory, January 1, 2017 20,000 Utilities 15,000 General and administrative costs 44,000 Merchandise inventory, December 31, 2017 33,000 Purchases 153,000 Miscellaneous costs 3,000 Transportation-in 5,000 Purchase returns and allowances 4,000 Purchase discounts 7,000 Revenues 320,000