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Valley Companys adjusted trial balance on August 31, 2016, its fiscal year-end, follows.

		Debit			Credit
Merchandise inventory		$	38,000
Other (noninventory) assets			152,000
Total liabilities					$	43,890
Common stock						51,152
Retained earnings						74,433
Dividends			8,000
Sales						259,920
Sales discounts			3,977
Sales returns and allowances			17,155
Cost of goods sold			100,577
Sales salaries expense			35,609
Rent expenseSelling space			12,216
Store supplies expense			3,119
Advertising expense			22,093
Office salaries expense			32,490
Rent expenseOffice space			3,119
Office supplies expense			1,040
Totals		$	429,395		$	429,395

On August 31, 2015, merchandise inventory was $30,666. Supplementary records of merchandising activities for the year ended August 31, 2016, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	111,720
Purchase discounts received		2,346
Purchase returns and allowances		5,363
Costs of transportation-in		3,900

VALLEY COMPANY Income Statement For Year Ended August 31, 2016 Sales $259,920 Less: Sales discounts $3,977 Less: Sales returns and allowances 17,155 21,132 Net sales 238,788 Gross loss 238,788 Expense Selling expenses Cost of goods sold Merchandise inventory 30,666 Cost of goods sold 111,720 Total selling expenses 142,386 General and administrative expenses Total general and administrative expenses 0 Total expenses 142,386

Required:

1. Compute the companys net sales for the year.

. Compute the companys total cost of merchandise purchased for the year.

Income Statement
For Year Ended August 31, 2016
Sales		$259,920
Less: Sales discounts	$3,977
Less: Sales returns and allowances	17,155	21,132
Net sales		238,788
Gross loss		238,788
Expense
Selling expenses
Cost of goods sold
Merchandise inventory	30,666
Cost of goods sold	111,720
Total selling expenses		142,386
General and administrative expenses
Total general and administrative expenses		0
Total expenses		142,386

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