The following amounts appeared on the Mendelstein Company's adjusted trial balance as of October 31, 2020, the end of its fiscal year: Merchandise inventory Other assets Liabilities Joe Mendelstein, capital Joe Mendelstein, withdrawals Interest income Sales Debit $ 1,800 Credit 48,000 $ 44,340 37,735 3,800 190 104,400 Sales returns and allowances 8,300 Sales discounts 1,205 Purchases 44,300 Purchase returns and allowances 2,550 Purchase discounts 980 Transportation-in 5,450 Sales salaries expense 18,600 Rent expense, selling space 10,000 Store supplies expense 4,000 Advertising expense office salaries expense office supplies expense Totals 9,800 22,800 Rent expense, office space 8,400 3,740 $190,195 $190,195 A physical count shows that the cost of the ending inventory is $13,400. Required: 1. Calculate the company's net sales for the year. Net sales $ 94,895 2. Calculate the company's cost of goods purchased for the year. Cost of goods purchased $ 46,220 3. Calculate the company's cost of goods sold for the year. Cost of goods sold $ 34,620 4. Present a multiple-step income statement that lists the company's net sales, cost of goods sold, and gross profit from sales. Net sales MENDELSTEIN COMPANY Income Statement For Year Ended October 31, 2020 Cost of goods sold Gross profit from sales Operating expenses: Advertising expense $ 9,800 Rent expense 18,400 Salaries expense 41,400 Supplies expense 7,740 Total operating expenses Loss from operations Other revenues and expenses: Interest revenue Loss $ 94,895 34,620 $ 60,275 77,340 $ 17,065 190 $ 16,875 5. Present a condensed single-step income statement that lists these expenses: cost of goods sold, selling expenses, and general and administrative expenses. Revenues: Net sales Interest revenue MENDELSTEIN COMPANY Income Statement For Year Ended October 31, 2020 Total revenues Expenses: General and administrative expenses Selling expenses Cost of goods sold Total expenses 34,620 $ 94,895 190 95,085 34,620