Valley Companys adjusted Trial Balance on August 31, 2020, its Fiscal year-end, is given below.

Valley Company Adjusted Trial Balance
	Debit	Credit
Ending Merchandise inventory	41000
Other Assets (noninventory)	130,400
Total Liabilities		25,000
K. Valley, Capital		10,000
K. Valley, Withdrawals	8,000
Sales		225,600
Sales Discounts	2,250
Sales returns and allowances	12,000
Cost of goods sold	74,500
Sales salaries expense	32,000
Rent expense- Selling space	8,000
Store supplies expense	1,500
Advertising Expense	13,000
Office salaries expense	28,500
Rent expense Office space	3,600
Office supplies expense	400
	$355,150	$335,150

Additional Information

1. The beginning merchandise inventory was $25,400

2. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs

Invoice cost of merchandise purchases $92,000	Purchases returns and allowances $4,500
Purchases discounts received $2,000	Costs of transportation -in 4,600

Required:

a. Compute the companys net sales for the year

b. Compute the companys total cost of merchandise purchased for the year

c. Prepare their income Statement