Valley Company?s adjusted trial balance on August 31, 2018, its fiscal year-end, follows.

On August 31, 2017, merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31, 2018, reveal the following itemized costs.

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 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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Debit Credit $ 41,000 Merchandise inventory 130,400 Other (noninventory) assets Total liabilities... Common stock..... Retained eamings... $ 25,000 10,000 94,550 Dividends .. 8,000 Sales ... 225,600 Sales discounts... 2,250 Sales retums and allowances 12,000 Cost of goods sold.... 74,500 Sales salaries expense.. 32,000 Rent expense-Selling space. 8,000 Store supplies expense . 1,500 Advertising expense.. Office salaries expense. 13,000 28,500 Rent expense-Office space Office supplies expense.. 3,600 400 $355,150 $355.150 Totals.... Invoice cost of merchandise purchases . Purchases discounts received..... Purchases returns and allowances. Costs of transportation-in.... $92,000 2,000 4,500 4,600