Walley Company's adjusted trial balance on August 31, 2018, its fiscal year-end, follows. Credit Debit $ 31,500 126,000 $ 36, 383 10,000 96,141 8,000 215, 460 Merchandise inventory Other (noninventory) assets Total liabilities Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-office space Office supplies expense Totals 3,297 14,220 84,041 29,518 10,127 2,586 18,314 26,933 2,586 862 $ 357,984 $ 357,984 On August 31, 2017, merchandise inventory was $25,421. Supplementary records of merchandising activities for the year ended August 31, 2018, reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $92,610 1,945 4,445 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. $ 215,460 VALLEY COMPANY Income Statement For Year Ended August 31, 2018 Sales Less: Sales discounts $ 3,297 Less: Sales returns and allowances 14,220 Net sales Cost of goods sold Gross profit Expenses 17,517 197,943 84,041 113,902 Selling expenses Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense oo 29,518 10,127 2,586 18,314 60,545 Total selling expenses General and administrative expenses Office salaries expense Office supplies expense Rent expense-Office space 26,933 862 2,586 30,381 Total general and administrative expenses Total expenses Net income 90,926 33,219