Barkley Company's adjusted trial balance on March 31, its fiscal year-end, follows. It categorizes the fol- lowing 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 5-3B Computing merchandising amounts and formatting income statements C1 C2 P4 Debit Credit $ 56,500 202,600 $ 42,500 164,425 3,000 332,650 Merchandise inventory (ending) .......... Other (noninventory) assets.............. Total liabilities ........................ C. Barkley, Capital. .................. C. Barkley, Withdrawals ................. Sales ......................... Sales discounts...... Sales returns and allowances ........... Cost o goods sold ..................... Sales salaries expense. .......... Rent expense-Selling space. .... Store supplies expense ................. Advertising expense.................... Office salaries expense .......... Rent expense-Office space . ......... Office supplies expense.......... Totals... 5,875 20,000 115,600 44,500 16,000 3,850 26,000 40,750 3,800 1,100 $539,575 $539,575 208 Chapter 5 Accounting for Merchandising Operations Beginning merchandise inventory was $37,500. Supplementary records of merchandising activities for the year ended March 31 reveal the following itemized costs. Invoice cost of merchandise purchases ......... $138,500 Purchases discounts received ..... ............. 2,950 Purchases returns and allowances............ $6,700 Costs of transportation-in ................... 5,750 Check (2) $134,600 (3) Gross profit, $191,175; Net income, $55,175 (4) Total expenses, $251,600 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, sell- ing expenses, and general and administrative expenses