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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)		$	44,000
Other (noninventory) assets			176,000
Total liabilities					$	50,820
Common stock						59,229
Retained earnings						84,308
Dividends			8,000
Sales						300,960
Sales discounts			4,605
Sales returns and allowances			19,863
Cost of goods sold			115,842
Sales salaries expense			41,232
Rent expenseSelling space			14,145
Store supplies expense			3,612
Advertising expense			25,582
Office salaries expense			37,620
Rent expenseOffice space			3,612
Office supplies expense			1,204
Totals		$	495,317		$	495,317

Beginning merchandise inventory was $35,508. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$	129,360
Purchases discounts received		2,717
Purchases returns and allowances		6,209
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.

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