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 Debit Credit $ 32,500 130,000 Total liabilities $ 37,538 Common stock 65,383 Retained earnings 43,749 Dividends 8,000 Sales 222,300 Sales discounts 3,401 Sales returns and allowances 14,672 Cost of goods sold 86,585 Sales salaries expense 30,455 Rent expense-Selling space 10,448 Store supplies expense 2,668 Advertising expense 18,896 Office salaries expense 27,788 Rent expense-Office space 2,668 Office supplies expense 889 $ $ 368,970 368,970 Totals Beginning merchandise inventory was $26,228. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.. Invoice cost of merchandise $ 95,550 purchases Purchases discounts received 2,007 Purchases returns and allowances 4,586 3,900 Costs of transportation-in Requir 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.