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)		$	43,000
Other (noninventory) assets			172,000
Total liabilities					$	49,665
Common stock						57,883
Retained earnings						82,659
Dividends			8,000
Sales						294,120
Sales discounts			4,500
Sales returns and allowances			19,412
Cost of goods sold			113,298
Sales salaries expense			40,294
Rent expenseSelling space			13,824
Store supplies expense			3,529
Advertising expense			25,000
Office salaries expense			36,765
Rent expenseOffice space			3,529
Office supplies expense			1,176
Totals		$	484,327		$	484,327

Beginning merchandise inventory was $34,701. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$	126,420
Purchases discounts received		2,655
Purchases returns and allowances		6,068
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.

Net Sales Sales Net sales Cost of Merchandise Purchased Invoice cost of merchandise purchased Purchases discounts received Purchases returns and allowances Costs of transportation-in Total cost of merchandise purchased Income Statement For Year Ended August 31 Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses VALLEY COMPANY Income Statement For Year Ended August 31 Expenses Total expenses