Problem 4-3B Computing merchandising amounts and formatting income statements CI P4 Barkley Company's adjusted account balances from its general ledger on March 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 Debit Credit Merchandise inventory (ending) $ 56,500 Other (noninventory) assets 202,600 Total liabilities $ 42.500 Common stock 10.000 Retained earnings 154,425 Dividends 3,000 Sales 332,650 Sales discounts 5.875 Sales returns and allowances 20,000 Cost of goods sold 115,600 Sales salaries expense 44.500 Rent expense-Selling space 16,000 Store supplies expense 3,850 Advertising expense 26,000 Office salaries expense 40.750 Rent expense-Office space 3,800 office supplies expense 1,100 Totals $539,575 5539,575 Tale Say A Page 194 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 Required L. Compute the company's net sales for the year. 2. Compute the company's total cost of merchandise purchased for the year. Check (2) $134,600 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. (3) Gross profit, $191,175: Net income $55.175 1. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. (4) Total expenses, $251,600