Valley Companys adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following 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.

		Debit			Credit
Merchandise inventory (ending)		$	42,000
Other (noninventory) assets			168,000
Total liabilities					$	48,510
Common stock						56,537
Retained earnings						81,013
Dividends			8,000
Sales						287,280
Sales discounts			4,395
Sales returns and allowances			18,960
Cost of goods sold			110,754
Sales salaries expense			39,357
Rent expenseSelling space			13,502
Store supplies expense			3,447
Advertising expense			24,419
Office salaries expense			35,910
Rent expenseOffice space			3,447
Office supplies expense			1,149
Totals		$	473,340		$	473,340

Beginning merchandise inventory was $33,894. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$	123,480
Purchases discounts received		2,593
Purchases returns and allowances		5,927
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.