[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 Merchandise inventory (ending) Other (non-inventory) assets Total liabilities Common stock Retained earnings Dividends Sales Sales discounts Debit $ 40,500 Credit 162,000 $ 46,778 78,547 54,518 8,000 277,020 4,238 Sales returns and allowances 18,283 Cost of goods sold 106,939 Sales salaries expense 37,952 Rent expense-Selling space 13,020 Store supplies expense 3,324 Advertising expense 23,547 office salaries expense 34,628 3,324 1,108 $ 456,863 $ 456,863 Rent expense-Office space Office supplies expense Totals Beginning merchandise inventory was $32,684. 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 $ 119,070 2,500 5,715 3,900 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.