(1) Using only Income Statement accounts/amounts from the textbox, prepare, in proper accounting format, a Multi-Step Income Statement, including Selling Expenses and General & Administrative Expenses as expense categories.

(2) Calculate the Gross Profit Percentage to two decimal places.

Valley Company's adjusted account balances from its general ledger on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: Sales Salaries Expense, Rent ExpenseSelling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. Problem 5-3A Computing merchandising amounts and formatting income statements C1 P4 Beginning merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 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. Check (2) $90,100 (3) Gross profit, $136,850; Net income, $49,850 4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, sell(4) Total expenses, $161,500 ing expenses, and general and administrative expenses