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)	$ 33,000
Other (non-inventory) assets	132,000
Total liabilities		$ 38,115
K. Valley, Capital		110,629
K. Valley, Withdrawals	8,000
Sales		225,720
Sales discounts	3,454
Sales returns and allowances	14,898
Cost of goods sold	87,857
Sales salaries expense	30,924
Rent expenseSelling space	10,609
Store supplies expense	2,709
Advertising expense	19,186
Office salaries expense	28,215
Rent expenseOffice space	2,709
Office supplies expense	903
Totals	$ 374,464	$ 374,464

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	$ 97,020
Purchases discounts received	2,037
Purchases returns and allowances	4,657
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.