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. Merchandise inventory (ending) Other (noninventory) assets Total liabilities Common stock Debit $ 34,000 Credit 136,000 $ 39,270 45,768 Retained earnings 67,851 Dividends 8,000 Sales 232,560 Sales discounts 3,558 Sales returns and allowances 15,349 Cost of goods sold 90,401 Sales salaries expense 31,861 Rent expense-Selling space 10,930 Store supplies expense 2,791 Advertising expense 19,768 Office salaries expense 29,070 Rent expense-Office space 2,791 Office supplies expense Totals 930 $385,449 $385,449 Beginning merchandise inventory was $27,438. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $99,960 2,099 4,798 3,900 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, selling expenses, and general and administrative expenses.