The following data are for Marvin Department Store. The account balances (in thousands) are for 2017.

Marketing, distribution, and customer-service costs............................$ 37,000

Merchandise inventory, January 1, 2017....................................................27,000

Utilities............................................................................................................17,000

General and administrative costs................................................................43,000

Merchandise inventory, December 31, 2017..............................................34,000

Purchases......................................................................................................155,000

Miscellaneous costs..........................................................................................4,000

Transportation-in..............................................................................................7,000

Purchase returns and allowances...................................................................4,000

Purchase discounts..........................................................................................6,000

Revenues.......................................................................................................280,000

Required

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

2. Prepare the income statement for 2017.