Valley Companys 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 expenseselling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.

Adjusted Account Balances	Debit	Credit
Merchandise inventory (ending)	$ 42,500
Other (non-inventory) assets	170,000
Total liabilities		$ 49,088
Common stock		81,838
Retained earnings		57,210
Dividends	8,000
Sales		290,700
Sales discounts	4,448
Sales returns and allowances	19,186
Cost of goods sold	112,026
Sales salaries expense	39,826
Rent expenseSelling space	13,663
Store supplies expense	3,488
Advertising expense	24,710
Office salaries expense	36,338
Rent expenseOffice space	3,488
Office supplies expense	1,163
Totals	$ 478,836	$ 478,836

Beginning merchandise inventory was $34,298. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$ 124,950
Purchases discounts received	2,624
Purchases returns and allowances	5,998
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 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.