Marketing and advertising costs

$54,000

Merchandise inventory, January 1, 2017

92,000

Shipping of merchandise to customers

2,000

Depreciation on Store Fixtures

9,000

Purchases

523,000

General and administrative costs

70,000

Merchandise inventory, December 31, 2017

109,000

Merchandise freight-in

22,000

Purchase returns and allowances

20,000

Purchase discounts

20,000

Revenues

630,000

The following data are for

MeedMeed

Retail Outlet Stores. The account balances (in thousands) are for

20172017.

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Requirements

1.

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

2.

Prepare the income statement for
20172017.

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

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

Meed Retail Outlet Stores

Schedule of Cost of Goods Purchased

For the Year Ended December 31, 2017 (in thousands)

Purchases

Add:

Deduct:

Cost of goods purchased

What are two benefits of consumer programs

The relationship requirement for qualifying relative requires the potential qualifying relative to have a family relationship with the taxpayer. t or fwhich of the following is not a from agi deduction? a.standard deductionb.itemized deductionc.personal exemptiond.none of these. all of these are from agi deductions

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.