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)		$	33,500
Other (noninventory) assets			134,000
Total liabilities					$	38,693
Common stock						45,095
Retained earnings						67,029
Dividends			8,000
Sales						229,140
Sales discounts			3,506
Sales returns and allowances			15,123
Cost of goods sold			89,129
Sales salaries expense			31,392
Rent expenseSelling space			10,770
Store supplies expense			2,750
Advertising expense			19,477
Office salaries expense			28,643
Rent expenseOffice space			2,750
Office supplies expense			917
Totals		$	379,957		$	379,957

Beginning merchandise inventory was $27,035. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$	98,490
Purchases discounts received		2,068
Purchases returns and allowances		4,728
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.