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 (noninventory) assets Total liabilities.. Debit $ 41,000 Credit 130,400 $ 25,000 K. Valley, Capital.. 104,550 K. Valley, Withdrawals 8,000 Sales 225,600 Sales discounts.. 2,250 Sales returns and allowances. 12,000 Cost of goods sold 74,500 Sales salaries expense.. 32,000 Rent expense-Selling space. 8,000 Store supplies expense 1,500 Advertising expense.. 13,000 Office salaries expense 28,500 Rent expense-Office space 3,600 Office supplies expense... 400 Totals.... $355,150 $355,150 Beginning merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases.... $92.000 Purchases discounts received... Required Purchases returns and allowances. $4,500 2,000 Costs of transportation-in.. 4,600 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, sell- ing expenses, and general and administrative expenses.