Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses.

Valley Companys adjusted trial balance on August 31, 2013, its fiscal year-end, follows.

			Debit			Credit
Merchandise inventory		$	42,500
Other (noninventory) assets			170,000
Total liabilities					$	49,088
K. Valley, Capital						139,048
K. Valley, Withdrawals			8,000
Sales						290,700
Sales discounts			4,448
Sales returns and allowances			19,186
Cost of goods sold			112,026
Sales salaries expense			39,826
Rent expenseSelling space			13,663
Store supplies expense			3,488
Advertising expense			24,710
Office salaries expense			36,338
Rent expenseOffice space			3,488
Office supplies expense			1,163
Totals		$	478,836		$	478,836

On August 31, 2012, merchandise inventory was $34,298. Supplementary records of merchandising activities for the year ended August 31, 2013, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	124,950
Purchase discounts received		2,624
Purchase returns and allowances		5,998
Costs of transportation-in		3,900