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

		Debit			Credit
Merchandise inventory		$	37,500
Other (noninventory) assets			150,000
Total liabilities					$	43,313
Common stock						10,000
Retained earnings						114,091
Dividends			8,000
Sales						256,500
Sales discounts			3,924
Sales returns and allowances			16,929
Cost of goods sold			99,306
Sales salaries expense			35,141
Rent expenseSelling space			12,056
Store supplies expense			3,078
Advertising expense			21,803
Office salaries expense			32,063
Rent expenseOffice space			3,078
Office supplies expense			1,026
Totals		$	423,904		$	423,904

On August 31, 2016, merchandise inventory was $30,263. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	110,250
Purchases discounts received		2,315
Purchases returns and allowances		5,292
Costs of transportation-in		3,900

1. Compute the companys net sales for the year. 2. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.