Problem 5-3A Computing merchandising amounts and formatting in come statements LO C2, P4 Valley Company's adjusted trial balance on August 31, 2017,its fiscal year-end, follows Merchandise inventory Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allovances Cost of goods sold Sales salaries expense Rent expense-3elling space Store nupplies expense Advertising expense Office salaries expense Rent expense-oeEice space Office supplies expense Iotals 37,000 148,000 S 42,735 122,594 8,000 253,080 a,872 16, 703 98,034 34, 672 11,895 3, 037 21, 512 a1, 635 3,037 1,012 9418,409 $418, 409 On August 31, 2016, merchandise Inventory was $29,859. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following ltemized costs. Inroice cost of merchandise purchases Purchases discounts received Purchases xeburns and allowance Costs of txansportation-in $108,780 2,284 s, 222 3, 900 Requlred 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 multple-step income statement that Includes separate categories for net sales, cost of goods sold, selling expenses, general and administrative expenses. 4. Prepare a single-step income statement that includes these expense categorles: cost of goods sold, selling expenses, and gene and administrative expenses. Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Required 3 Required 4 Prepare a multiple-step income statement that begins with net sales and includes separate categories for: cost of goods sold, selling expenses, and general and administrative expenses. VALLEY COMPANY Income Statement For Year Ended August 31, 2017 Sales Less: Sales discounts Add: Sales discounts S 232.505 S 29,859 05,175 135,034 97,471 98,034 -563 Cost of goods sold Gross profit Expense Selling expenses For Year Ended August 31, 2017 Sales Less: Sales discounts Add: Sales discounts $ 232,505 $ 29,859 105.175 135,034 97,471 98,034 -583 Cost of goods sold Gross profit Expense Selling expenses Sales salaries expense Rent expense-Offioe space Advertising expense Store supplies expense 34,672 11,895 21,512 3,037 71,116 Total selling expenses General and administrative expenses Office salaries expense Rent expense-Selling space Office supplies expense 31,835 3,037 1,012 Total general and administrative expenses Total expenses 35,884 106,800 S 27,871 Net income Required 2 Required4 > Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Required 3 Required 4 Prepare a single-step income statement that includes these expense categories: cost of goo expenses, and general and administrative expenses VALLEY COMPANY Income Statement For Year Ended August 31, 2017 Net sales S 232,505 Expenses Cost of goods sold Selling expenses 98,034 Total expenses 98,034 K Required 3