X 6 fx An Introduction to Cost Terms and Purposes D E F G An Introduction to Cost Terms and Purposes Cost of goods purchased, cost of goods sold, and income statement The following data are for Arizona Retail Outlet Stores. The account balances (in thousands) are for 2017. 5 Marketing and advertising costs $55,220 Merchandise inventory, January 1, 2017 103,500 Shipping of merchandise to customers 4,600 Depreciation on store fixtures 9,660 Purchases 598,000 1 General and administrative costs 73,600 2. Merchandise inventory, December 31, 2017 119,600 3 Merchandise freight-in 23,000 -4 Purchase returns and allowances 25,300 Purchase discounts 20,700 16 Revenues 736,000 17 18 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste 19 from the Instruction tab you will be marked wrong. 20 21 Requirements 22 1 Compute (a) the cost of goods purchased and (b) the cost of goods sold. 23 2 Prepare the income statement for 2017 24 a. Check your spelling carefully and do not abbreviate. b. Enter all amounts as positive values. Do not use a minus sign or parentheses for any 25 values to be subtracted 26 27 Saving & Submitting Solution 28 1 Save file to desktop. a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS 30 b. Save your solution in the folder you just created; add solution-date to end of file name 31 2 Upload and submit your file to be praded INSTRUCTIONS ENTERANSWERS + 29 Ready F 1a. Compute the cost of goods purchased. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) Cost of goods purchased 1b. Compute the cost of goods sold. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) 8 9 Cost of goods sold 10 11 2. Prepare the income statement for 2017 (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the 12 Instruction tab you will be marked wrong.) 13 Arizona Retail Outlet Stores 15 Income Statement 16 Year Ended December 31, 2017 (in thousands) 18 19 20 Gross Margin 21 Operating costs: 22 23 24 14 17 NNNN 25 26 Total operating costs 27 Operating income (loss) 28 29 30