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)	$ 37,500
Other (non-inventory) assets	150,000
Total liabilities		$ 43,313
Common stock		73,612
Retained earnings		50,479
Dividends	8,000
Sales		256,500
Sales discounts	3,924
Sales returns and allowances	16,929
Cost of goods sold	99,306
Sales salaries expense	35,141
Rent expenseSelling space	12,056
Store supplies expense	3,078
Advertising expense	21,803
Office salaries expense	32,063
Rent expenseOffice space	3,078
Office supplies expense	1,026
Totals	$ 423,904	$ 423,904

Beginning merchandise inventory was $30,263. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$ 110,250
Purchases discounts received	2,315
Purchases returns and allowances	5,292
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