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.

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.

\begin{tabular}{lrr} Adjusted Account Balances & \multicolumn{1}{l}{ Debit } & Credit \\ Merchandise inventory (ending) & $41,000 & \\ Other (non-inventory) assets & 130,400 & \\ Total liabilities & & $25,000 \\ K. Valley, Capital & & 104,550 \\ K. Valley, Withdrawals & 8,000 & \\ Sales & & 225,600 \\ Sales discounts & 2,250 & \\ Sales returns and allowances & 12,000 & \\ Cost of goods sold & 74,500 & \\ Sales salaries expense & 32,000 & \\ Rent expense-Selling space & 8,000 & \\ Store supplies expense & 1,500 & \\ Advertising expense & 13,000 & \\ Office salaries expense & 28,500 & \\ Rent expense-0ffice space & 3,600 & \\ Office supplies expense & 400 & \\ Totals & $355,150 & $355,150 \\ \cline { 2 - 4 } \end{tabular} Beginning merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs