Valley Company's 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 expense-selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Adjusted Account Balances Merchandise inventory (ending) Other (non-inventory) assets Total liabilities Common stock Retained earnings Debit $ 33,000 Credit 132,000 $ 38,115 66,207 44,422 Dividends 8,000 Sales Sales discounts 225,720 3,454 Sales returns and allowances 14,898 Cost of goods sold 87,857 Sales salaries expense 30,924 Rent expense-Selling space 10,609 Store supplies expense 2,709 Advertising expense 19,186 Office salaries expense 28,215 Rent expense-Office space 2,709 903 $374,464 $374,464 office supplies expense Totals Beginning merchandise inventory was $26,631. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $ 97,020 2,037 4,657 3,900 D Problem 4-3A (Algo) Computing merchandising amounts and formatting income statements LO C1, P4 Required: 1. Compute the company's net sales for the year. 2. Compute the company's 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-steo income statement that includes these expense categories: cost of goods sold. sellino expenses, and Compute the company's net sales for the year. Sales Net 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 Expenses Selling expenses VALLEY COMPANY Income Statement For Year Ended August 31 Total selling expenses General and administrative expenses. Total general and administrative expenses Total expenses Expenses VALLEY COMPANY Income Statement For Year Ended August 31 Total expenses