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[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.

Adjusted Account Balances	Debit	Credit
Merchandise inventory (ending)	$ 41,000
Other (non-inventory) assets	130,400
Total liabilities		$ 25,000
K. Valley, Capital		104,550
K. Valley, Withdrawals	8,000
Sales		225,600
Sales discounts	2,250
Sales returns and allowances	12,000
Cost of goods sold	74,500
Sales salaries expense	32,000
Rent expenseSelling space	8,000
Store supplies expense	1,500
Advertising expense	13,000
Office salaries expense	28,500
Rent expenseOffice space	3,600
Office supplies expense	400
Totals	$ 355,150	$ 355,150

Beginning merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$ 92,000
Purchases discounts received	2,000
Purchases returns and allowances	4,500
Costs of transportation-in	4,600

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.

5. Prepare closing entries as of August 31 (the perpetual inventory system is used)