7 Part 1 of 2 eBook Required information [The following information applies to the questions displayed below.] 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 expense-selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Adjusted Account Balances Merchandise inventory (ending) Other (non-inventory) assets Total liabilities Common stock Retained earnings Dividends Sales Sales discounts Debit $ 44,000 176,000 Credit $ 50,820 84,308 59,229 8,000 300,960 4,605 Sales returns and allowances 19,863 Cost of goods sold 115,842 Sales salaries expense 41,232 Rent expense-Selling space 14,145 Store supplies expense 3,612 Advertising expense 25,582 Office salaries expense 37,620 Rent expense-Office space 3,612 Office supplies expense 1,204 Totals S 495,317 $495,317 Beginning merchandise inventory was $35,508. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $ 129,360 2,717 6,209 3,900 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.