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The following data are for montgomery retail outlet stores

28/04/2021 Client: muhammad11 Deadline: 2 Day

The following data are for Montgomery Retail Outlet Stores. The account balances (in thousands) are for 2011.

Marketing and advertising costs $ 24,000

Merchandise inventory, January 1, 2011 45,000

Shipping of merchandise to customers 2,000

Building depreciation $ 4,200

Purchases 260,000

General and administrative costs 32,000

Merchandise inventory, December 31, 2011 52,000

Merchandise freight-in 10,000

Purchase returns and allowances 11,000

Purchase discounts 9,000

Revenues 320,000

Required

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

2. Prepare the income statement for 2011.

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