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 Merchandise inventory (ending) $ 38,500 Other (noninventory) assets Total liabilities Common stock Retained earnings 154,000 $ 44,468 51,825 75,256 Dividends 8,000 Sales 263,340 Sales discounts 4,029 Sales returns and allowances 17,380 Cost of goods sold 101,850 Sales salaries expense 36,078 Rent expense-Selling space 12,377. Store supplies expense 3,160 Advertising expense 22,384 Office salaries expense 32,918 Rent expense-Office space 3,160 1,053 $434,889 $434,889 Office supplies expense Totals Beginning merchandise inventory was $31,070. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases $113,190 Purchases discounts received Purchases returns and allowances Costs of transportation-in 2,377 5,433 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.