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[The following information applies to the questions displayed below.] Valley Companys adjusted trial balance on August 31, 2016, its fiscal year-end, follows. Debit Credit Merchandise

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

Valley Companys adjusted trial balance on August 31, 2016, its fiscal year-end, follows.

Debit Credit
Merchandise inventory $ 38,000
Other (noninventory) assets 152,000
Total liabilities $ 43,890
Common stock 51,152
Retained earnings 74,433
Dividends 8,000
Sales 259,920
Sales discounts 3,977
Sales returns and allowances 17,155
Cost of goods sold 100,577
Sales salaries expense 35,609
Rent expenseSelling space 12,216
Store supplies expense 3,119
Advertising expense 22,093
Office salaries expense 32,490
Rent expenseOffice space 3,119
Office supplies expense 1,040
Totals $ 429,395 $ 429,395

On August 31, 2015, merchandise inventory was $30,666. Supplementary records of merchandising activities for the year ended August 31, 2016, reveal the following itemized costs.

Invoice cost of merchandise purchases $ 111,720
Purchase discounts received 2,346
Purchase returns and allowances 5,363
Costs of transportation-in 3,900

VALLEY COMPANY
Income Statement
For Year Ended August 31, 2016
Sales $259,920
Less: Sales discounts $3,977
Less: Sales returns and allowances 17,155 21,132
Net sales 238,788
Gross loss 238,788
Expense
Selling expenses
Cost of goods sold
Merchandise inventory 30,666
Cost of goods sold 111,720
Total selling expenses 142,386
General and administrative expenses
Total general and administrative expenses 0
Total expenses 142,386

Required:

1. Compute the companys net sales for the year.

. Compute the companys total cost of merchandise purchased for the year.

Income Statement
For Year Ended August 31, 2016
Sales $259,920
Less: Sales discounts $3,977
Less: Sales returns and allowances 17,155 21,132
Net sales 238,788
Gross loss 238,788
Expense
Selling expenses
Cost of goods sold
Merchandise inventory 30,666
Cost of goods sold 111,720
Total selling expenses 142,386
General and administrative expenses
Total general and administrative expenses 0
Total expenses 142,386

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