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The following data are for XYZ merchandising company. The account balances are for 2020.
Merchandise inventory (January 1) $133,500
Merchandise inventory (December 31) 122,700
Marketing & distribution costs 218,500
Store utilities 36,500
General administrative expenses 157,800
Purchases 455,000 Transportation in 67,500
Purchase discounts 26,500
Purchase returns and allowances 12,800
Sales revenue 950,000
Required:
a. Compute cost of goods purchased. (10 points)
b. Compute cost of goods sold (10 points)
c. Prepare an income statement for the year (20 points)
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