The following data are for

Milton

Department Store. The account balances (in thousands) are for

2020.

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.

(a) Calculate the cost of goods purchased by completing the schedule.

Milton Department Store
Schedule of Cost of Goods Purchased
For the Year Ended December 31, 2020 (in thousands)
Purchases			157000
Add:	Utilities		15000
			172000
Deduct:
	Purchase return and allowances	3000
	Purchase discounts	9000	12000
Cost of goods purchased			184000

Data Table

Marketing, distribution, and customer-service costs	$36,000
Merchandise inventory, January 1, 2020	24,000
Utilities	15,000
General and administrative costs	45,000
Merchandise inventory, December 31, 2020	39,000
Purchases	157,000
Miscellaneous costs	2,000
Transportation-in	8,000
Purchase returns and allowances	3,000
Purchase discounts	9,000
Revenues	325,000