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)	$ 34,000
Other (non-inventory) assets	136,000
Total liabilities		$ 39,270
Common stock		67,851
Retained earnings		45,768
Dividends	8,000
Sales		232,560
Sales discounts	3,558
Sales returns and allowances	15,349
Cost of goods sold	90,401
Sales salaries expense	31,861
Rent expenseSelling space	10,930
Store supplies expense	2,791
Advertising expense	19,768
Office salaries expense	29,070
Rent expenseOffice space	2,791
Office supplies expense	930
Totals	$ 385,449	$ 385,449

Beginning merchandise inventory was $27,438. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$ 99,960
Purchases discounts received	2,099
Purchases returns and allowances	4,798
Costs of transportation-in	3,900

Problem 4-3A (Algo) Computing merchandising amounts and formatting income statements LO C1, P4

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