Problem 4-3A Computing merchandising amounts and formatting income statements LO C2, P4 Valley Company's adjusted trial balance 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. Merchandise inventory (ending) Other (noninventory) assets Total liabilities Common stock Retained earnings Debit Credit $ 31,000 124,000 $ 35,805 41,729 62,912 Dividends 8,000 Sales 212,040 Sales discounts 3,244 Sales returns and allowances 13,995 Cost of goods sold 82,768 Sales salaries expense 29,049 Rent expense-Selling space 9,966 Store supplies expense 2,544 Advertising expense 18,023 office salaries expense 26,505 Rent expense-office space 2,544 office supplies expense 848 Totals $352,486 $352,486 Beginning merchandise inventory was $25,017. 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 Required: 1. Compute the company's net sales for the year. $91,140 1,914 4,375 3,900 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the company's net sales for the year. Net Sales and administrative expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the company's net sales for the year. Net Sales Sales Net sales Required 2 > and administrative expenses. Complete this question by entering your answers in the tabs below. Required 1 Required Required 3 Required 4 Compute the company's total cost of merchandise purchased for the year. Cost of Merchandise Purchased Invoice cost of merchandise purchased Purchases discounts received Purchases returns and allowances Costs of transportation-in Total cost of merchandise purchased Expenses Selling expenses VALLEY COMPANY Income Statement For Year Ended August 31 Total selling expenses General and administrative expenses Total selling expenses General and administrative expenses + Total general and administrative expenses Total expenses < Required 2 Required 4 > Required 1 Required 2 Required 3 Required 4 Prepare a single-step income statement that includes these expense categories: cost of good general and administrative expenses. VALLEY COMPANY Income Statement For Year Ended August 31 Expenses Total expenses < Required 3