Required information Skip to question [The following information applies to the questions displayed below.] Valley Companys 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 expenseselling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.

Beginning merchandise inventory was $31,877. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases $ 116,130 Purchases discounts received 2,439 Purchases returns and allowances 5,574 Costs of transportation-in 3,900 Required: 1. Compute the companys net sales for the year. 2. Compute the companys 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.

Adjusted Account Balances	Debit	Credit
Merchandise inventory (ending)	$ 39,500
Other (non-inventory) assets	158,000
Total liabilities		$ 45,623
K. Valley, Capital		130,073
K. Valley, Withdrawals	8,000
Sales		270,180
Sales discounts	4,134
Sales returns and allowances	17,832
Cost of goods sold	104,394
Sales salaries expense	37,015
Rent expenseSelling space	12,698
Store supplies expense	3,242
Advertising expense	22,965
Office salaries expense	33,773
Rent expenseOffice space	3,242
Office supplies expense	1,081
Totals	$ 445,876	$ 445,876