Required information [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) $ 32,500 Other (non-inventory) assets 130,000 Total liabilities $ 37,538 Common stock 65,383 Retained earnings 43,749 Dividends 8,000 Sales 222,300 Sales discounts 3,401 Sales returns and allowances 14,672 Cost of goods sold 86,585 Sales salaries expense 30,455 Rent expense-Selling space 10,448 Store supplies expenso 2,668 Advertising expense 18,896 office salaries expense 27, 788 Rent expense-office space 2,668 Office supplien expense 889 Totals $. 368,970 $ 368,970 Beginning merchandise inventory was $26,228. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchane $ 95,550 Purchases discounts received 2,007 Purchases returns and allowances costs of transportation-in 3,900 4,586 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. Complete this question by entering your answers in the tabs below. Required: Required 2 Required Required Compute the company's net sales for the year. Net Sales Sales Loss: Sales discounts Less Sales retums and allowances Net sales Required 2 > Required 1 Required 2 Required 3 Required 4 Compute the company's total cost of merchandise purchased for the year. Cost of Merchandise Purchased Invoice cost of merchandise purchased Purchases discounts received Purchases returns and allowances Costs of transportation-in Total cost of merchandise purchased Required information Required 1 Required 2 Required 3 Required 4 Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. VALLEY COMPANY Income Statement For Year Ended August 31 Salos 0 0 0 Less: Sales discounts Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Expenses Selling expenses Advertising expenso Store supplies expense Sales salaries expense Rent expense Selling space 0 0 Net sales Cost of goods sold Gross profit Expenses Selling expenses Advertising expense Store supplies expense Sales salaries expense Rent expense_Selling space 0 Total selling expenses General and administrative expenses Office salaries expense Rent expense-Office space Office supplies expense 0 Total general and administrative expenses Total expenses Net income 0 Prepare a single-step Income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. VALLEY COMPANY Income Statement For Year Endod August 31 Net sales Expenses General and administrative expenses Selling expenses Cost of goods sold 0 Total expenses Not Income