[The following information applies to the questions displayed below.]

Valley Companys adjusted trial balance on August 31, 2015, its fiscal year-end, follows.

			Debit			Credit
Merchandise inventory		$	32,500
Other (noninventory) assets			130,000
Total liabilities					$	37,538
Common stock						43,749
Retained earnings						65,383
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 expenseSelling space			10,448
Store supplies expense			2,668
Advertising expense			18,896
Office salaries expense			27,788
Rent expenseOffice space			2,668
Office supplies expense			889
Totals		$	368,970		$	368,970

On August 31, 2014, merchandise inventory was $26,228. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	95,550
Purchase discounts received		2,007
Purchase returns and allowances		4,586
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 selling expenses and for 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.

Valley Companys adjusted trial balance on August 31, 2015, its fiscal year-end, follows.

Valley Companys adjusted trial balance on August 31, 2015, its fiscal year-end, follows.

Valley Companys adjusted trial balance on August 31, 2015, its fiscal year-end, follows.

Valley Companys adjusted trial balance on August 31, 2015, its fiscal year-end, follows.