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)	$ 31,500
Other (noninventory) assets	126,000
Total liabilities		$ 36,383
Common stock		42,403
Retained earnings		63,738
Dividends	8,000
Sales		215,460
Sales discounts	3,297
Sales returns and allowances	14,220
Cost of goods sold	84,041
Sales salaries expense	29,518
Rent expenseSelling space	10,127
Store supplies expense	2,586
Advertising expense	18,314
Office salaries expense	26,933
Rent expenseOffice space	2,586
Office supplies expense	862
Totals	$ 357,984	$ 357,984

Beginning merchandise inventory was $25,421. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$ 92,610
Purchases discounts received	1,945
Purchases returns and allowances	4,445
Costs of transportation-in	3,900

Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.

Beginning merchandise inventory was $25,421. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs