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)		$	45,000
Other (noninventory) assets			180,000
Total liabilities					$	51,975
Common stock						60,575
Retained earnings						85,954
Dividends			8,000
Sales						307,800
Sales discounts			4,709
Sales returns and allowances			20,315
Cost of goods sold			118,387
Sales salaries expense			42,169
Rent expenseSelling space			14,467
Store supplies expense			3,694
Advertising expense			26,163
Office salaries expense			38,475
Rent expenseOffice space			3,694
Office supplies expense			1,231
Totals		$	506,304		$	506,304

Beginning merchandise inventory was $36,315. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$	132,300
Purchases discounts received		2,778
Purchases returns and allowances		6,350
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.