Valley Company's adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Credit $ Debit 36,500 146,000 $ 42,158 121,098 8,000 249,660 Merchandise inventory Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-Office space Office supplies expense Totals 3,820 16,478 96,761 34,203 11,734 2,996 21, 221 31, 208 2,996 999 $412,916 $412,916 On August 31, 2016, merchandise inventory was $29,456. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $107,310 2,254 5,151 3,900 Required: 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. Compute the company's net sales for the year. Net Sales Sales Net sales Cost of merchandise purchased Invoice cost of merchandise purchased Purchase discounts received Purchase returns and allowances Costs of transportation-in Total cost of merchandise purchased VALLEY COMPANY Income Statement For Year Ended August 31, 2017 Expense Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses VALLEY COMPANY Income Statement For Year Ended August 31, 2017 Expenses Total expenses