Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: Sales Salaries Expense, Rent Expense--Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. Debit Credit $ 25,000 10,000 94,550 225,600 Merchandise inventory (ending) $ 41,000 Other (noninventory) assets 130,400 Total liabilities Common stock Retained earnings Dividends 8,000 Sales 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 3,600 Rent expense-Office space Office supplies expense Totals 400 $355,150 $355,150 Beginning merchandise inventory was $25,400. 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 1. Compute the company's net sales for the year. 2. Compute the company's total cost of merchandise purchased for the year. Check (2) $90,100 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. (3) Gross profit, $136,850. Net income, $49,850 4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. LALTA NA