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Use the following information for the Problems 3A-4A below. (Algo)

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Valley Companys adjusted account balances from its general ledger 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.

Adjusted Account Balances	Debit	Credit
Merchandise inventory (ending)	$ 30,500
Other (noninventory) assets	122,000
Total liabilities		$ 35,228
Common stock		41,056
Retained earnings		62,091
Dividends	8,000
Sales		208,620
Sales discounts	3,192
Sales returns and allowances	13,769
Cost of goods sold	81,497
Sales salaries expense	28,581
Rent expenseSelling space	9,805
Store supplies expense	2,503
Advertising expense	17,733
Office salaries expense	26,078
Rent expenseOffice space	2,503
Office supplies expense	834
Totals	$ 346,995	$ 346,995

Beginning merchandise inventory was $24,614. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$ 89,670
Purchases discounts received	1,883
Purchases returns and allowances	4,304
Costs of transportation-in	3,900

Problem 4-3A (Algo) Computing merchandising amounts and formatting income statements LO C1, P4

Required:

Compute the companys net sales for the year.

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

Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.

Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.