Valley Companys 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 expenseselling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.

Adjusted Account Balances		Debit			Credit
Merchandise inventory (ending)		$	32,000
Other (noninventory) assets			128,000
Total liabilities					$	36,960
Common stock						43,076
Retained earnings						64,560
Dividends			8,000
Sales						218,880
Sales discounts			3,349
Sales returns and allowances			14,446
Cost of goods sold			85,312
Sales salaries expense			29,987
Rent expenseSelling space			10,287
Store supplies expense			2,627
Advertising expense			18,605
Office salaries expense			27,360
Rent expenseOffice space			2,627
Office supplies expense			876
Totals		$	363,476		$	363,476

Beginning merchandise inventory was $25,824. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$	94,080
Purchases discounts received		1,976
Purchases returns and allowances		4,516
Costs of transportation-in		3,900

Required:

1. Compute the companys net sales for the year. 2. Compute the companys 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.