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. Credit $ 44,468 51,825 75,256 263,340 Debit Merchandise inventory (ending) $ 38,500 Other (noninventory) assets 154,000 Total liabilities Common stock Retained earnings Dividends 8,000 Sales Sales discounts 4,029 Sales returns and allowances 17,380 Cost of goods sold 101,950 Sales salaries expense 36,079 Rent expense Selling pace 12,377 Store supplies expense 3,160 Advertising expense 22,384 Office salaries expense 32,919 Rent expense-Office space 3,160 Office supplies expense 1,053 Totals $434,889 $434,889 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 Purchases discounts received Purchases returns and allowances Costs of transportation-in $113, 190 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. 4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. Required 1 Required 2 Required 3 Required 4 Compute the company's total cost of merchandise purchased for the year. Cost of Merchandise Purchased Invoice cost of merchandise purchased Purchases discounts received Purchases returns and allowances Costs of transportation-in Total cost of merchandise purchased 113,190 2,377 5,433 3,900 Required 1 Required 2 Required 3 Required 4 Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. $ 263,340 4,029 17,380 21,409 241,931 VALLEY COMPANY Income Statement For Year Ended August 31 Sales Less: Sales discounts $ Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Expenses Selling expenses Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense 241,931 0 Total seling expenses General and administrative expenses 0 Total general and administrative expenses Total expenses D Required 1 Required 2 Required 3 Required 4 Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. VALLEY COMPANY Income Statement For Year Ended August 31 Expenses Total expenses D