Valley Company’s adjusted trial balance on August 31, 2008, its fiscal year-end, follows. (Also, merchandise inventory was \($41,000\) on August 31, 2008.)

Required
1. Compute the company’s net sales for the year.
2. Compute the company’s total cost of merchandise available for sale.
3. Compute gross profit.
4. Compute net income.

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Debit Credit Merchandise inventory, August 31, 2007 Other (noninventory) assets Total liabilities $ 25,400 130,400 $ 25,000 K. Valley, Capital 104,550 K. Valley, Withdrawals 8,000 Sales 225,600 Sales discounts 2,250 Sales returns and allowances 12,000 Purchases 92,000 Purchase discounts 2,000 Purchase returns and allowances 4,500 Transportation-in 4.600 Sales salaries expense 32,000 Rent expense-Selling space 8,000 Store supplies expense 1,500 Advertising expense 13,000 Office salaries expense 28.500 Rent expense-Office space 3,600 Office supplies expense 400 Totals $361,650 $361,650