Valley Companys adjusted trial balance on August 31, 2017, its fiscal year-end, follows.

		Debit			Credit
Merchandise inventory		$	41,000
Other (noninventory) assets			164,000
Total liabilities					$	47,355
K. Valley, Capital						134,560
K. Valley, Withdrawals			8,000
Sales						280,440
Sales discounts			4,291
Sales returns and allowances			18,509
Cost of goods sold			108,210
Sales salaries expense			38,420
Rent expenseSelling space			13,181
Store supplies expense			3,365
Advertising expense			23,837
Office salaries expense			35,055
Rent expenseOffice space			3,365
Office supplies expense			1,122
Totals		$	462,355		$	462,355

On August 31, 2016, merchandise inventory was $33,087. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	120,540
Purchases discounts received		2,531
Purchases returns and allowances		5,786
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.

Net Sales Sales Net sales