Barkley Company’s adjusted account balances from its general ledger on March 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: Sales Salaries Expense, Rent Expense— Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative.

Beginning merchandise inventory was $37,500. Supplementary records of merchandising activities for the year ended March 31 reveal the following itemized costs.

Required

1. Compute the company’s net sales for the year. 

2. Compute the company’s total cost of merchandise purchased for the year. 

3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 

4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.

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Adjusted Account Balances Deblt Credit $ 56,500 Merchandise inventory (ending) Other (noninventory) assets.... 202,600 Total liabilities... $ 42,500 Common stock .... 10,000 154,425 Retained earnings... Dividends ..... Sales .... 3,000 332,650 Sales discounts. 5,875 Sales returns and allowances 20,000 115,600 44,500 Cost of goods sold .... Sales salaries expense. Rent expense-Selling space.. Store supplies expense Advertising expense.. Office salaries expense 16,000 3,850 26,000 40,750 3,800 Rent expense-Office space Office supplies expense.. 1,100 Totals.. $539,575 $539,575