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 Debit $ 33,000 Credit 132,000 K. Valley, Capital K. Valley, Withdrawals Sales $ 38,115 110,629 8,000 225,720 Sales discounts 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 2,709 903 $ 374,464 $ 374,464 Rent expense-Office space 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 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-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.