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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

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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, selling expenses, and general and administrative expenses. Use the following information for the Problems 3A-4A below. (Algo) (The following information applies to the questions displayed below.) Valley Company's adjusted account balances from its general ledger 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. Adjusted Account balances Debit Credit Merchandise inventory (ending) $ 43,500 Other (noninventory) assets 174,000 Total liabilities $ 50,243 Common stock 58,556 Retained earnings 83,482 Dividends 8,000 Sales 297,540 Sales discounts 4,552 Sales returns and allowances 19,638 Cont of goods sold 114,570 Sales salaries expense 40,763 Rent expense-selling space 13,984 Store supplies expense 3,570 Advertising expense 25.291 office salaries expense 37,193 Rent expense-office space 3,570 office supplies expense 1,190 Totals $409,821 $400,021 Beginning merchandise inventory was $35,105. 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 $127.890 2.686 6.139 3.900

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