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) $ 32,500 Other (noninventory) assets 130,000 Total liabilities $ 37,538 Common stock 43,749 Retained earnings 65,383 Dividends 8,000 Sales 222,300 Sales discounts 3,401 Sales returns and allowances 14,672 Cost of goods sold 86,585 Sales salaries expense 30,455 Rent expenseSelling space 10,448 Store supplies expense 2,668 Advertising expense 18,896 Office salaries expense 27,788 Rent expenseOffice space 2,668 Office supplies expense 889 Totals $ 368,970 $ 368,970 Beginning merchandise inventory was $26,228. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases $ 95,550 Purchases discounts received 2,007 Purchases returns and allowances 4,586 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.