219 Chapter 5 Accounting for Merchandising Operations valley Company's adjusted trial balance on August 31, 2013, its fiscal year-end, follows. Computing merchandising amounts and formatting ncome statements Debit Merchandise inventory 41,000 Other (noninventory) assets 30,400 Total liabilities 25,000 K. Valley, Capital 10-1.550 K Valley. Withdrawals 225,600 Sales discounts Sales returns and allowances Cost of goods sold 74,500 Sales salaries expense 32.000 Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense 28,500 Rent expense-Office space Office supplies expense $355. $355 On August 31, 2012, merchandise inventory was $25.400. Supplementary records of merchandising ac- tivities for the year ended August 31, 2013, reveal the following itemized costs. Invoice cost of merchandise purchases $92,000 Purchase discounts received Purchase returns and allowances. Costs of transportation in Required 1. Compute the company's net sales for the year. 2. Compute the company's total cost of merchandise purchased for the year. Check (2) $90,100 3. Prepare a multiple-step income statement that includes separate categories for selling expenses and for Gross profit, s136,850, general and administrative expenses. 4. Prepare a single-step income statement that includes these expense categories: cost of goods sold A) Total expenses, S161,500 selling expenses, and general and administrative expenses. Use the data for Valley Company in Problem 5-4A to complete the following requirements. Problem 5-5A