Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the fol- lowing accounts as selling expenses: Sales Salaries Expense, Rent ExpenseSelling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. Problem 5-3A Computing merchandising amounts and formatting income statements C2 P4 Debit Credit $ 41,000 130,400 $ 25,000 104,550 8,000 muidwals ........ 225,600 Merchandise inventory (ending) .......... 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 ................................ Se ...... 2,250 12,000 74,500 32,000 8,000 1,500 13,000 28,500 3,600 400 $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 ............ Purchases discounts received .................. $92,000 2,000 Purchases returns and allowances.............. costs of transportation-in ................... $4,500 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. 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, sell- ing expenses, and general and administrative expenses. Check (2) $90,100 (3) Gross profit, $136,850; Net income, $49,850 (4) Total expenses, $161,500