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)	$ 38,500
Other (non-inventory) assets	154,000
Total liabilities		$ 44,468
K. Valley, Capital		127,081
K. Valley, Withdrawals	8,000
Sales		263,340
Sales discounts	4,029
Sales returns and allowances	17,380
Cost of goods sold	101,850
Sales salaries expense	36,078
Rent expenseSelling space	12,377
Store supplies expense	3,160
Advertising expense	22,384
Office salaries expense	32,918
Rent expenseOffice space	3,160
Office supplies expense	1,053
Totals	$ 434,889	$ 434,889

Beginning merchandise inventory was $31,070. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$ 113,190
Purchases discounts received	2,377
Purchases returns and allowances	5,433
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.