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) Debit $ 35,000 Credit Other (non-inventory) assets Total liabilities 140,000 $ 40,425 K. Valley, Capital 116,611 K. Valley, Withdrawals 8,000 Sales 239,400 Sales discounts 3,663 Sales returns and allowances 15,800 Cost of goods sold 92,945 Sales salaries expense 32,798 Rent expense-Selling space 11,252 Store supplies expense 2,873 Advertising expense 20,349 Office salaries expense 29,925 Rent expense-Office space 2,873 958 $ 396,436 Office supplies expense Totals $ 396,436 Beginning merchandise inventory was $28,245. 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 $ 102,900 2,161 4,939 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.