Valley Company's adjusted trial balance on August 31, 2015, its fiscal year-end, follows.

On August 31, 2014, merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs.
Invoice cost of merchandise purchases . . . . . . . $92,000
Purchase discounts received . . . . . . . . . . . . . . . . .   2,000
Purchase returns and allowances. . . . . . . . . . . . . .  4,500
Costs of transportation-in . . . . . . . . . . . . . . . . . .      4,600
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 selling expenses and for 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.

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Debit Credit Merchandise inventory 41,000 130,400 Other (noninventory) assets Total liabilities $ 25,000 104,550 K. Valley, Capital.. K. Valley Withdrawals... 8,000 225,600 Sales. Sales discounts Sales returns and allowances 2,250 2,000 74,500 32,000 8,000 ,500 13,000 Cost of goods sold Sales salaries expense Rent expense Selling space Store supplies expense. Advertising expense Office salaries expense .. Rent expens e Office space. 3,600 Office supplies expense Totals $355,150 $355,150