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Valley Company$$s adjusted account balances from its general ledger on August $31,$ its fiscal year$-$end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense$$selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.

Adjusted Account Balances Debit Credit

Merchandise inventory $($ending$)$ $ $39,000$

Other $($non$-$inventory$)$ assets $156,000$

Total liabilities $ $45,045$

Common stock $76,078$

Retained earnings $52,498$

Dividends $8,000$

Sales $266,760$

Sales discounts $4,081$

Sales returns and allowances $17,606$

Cost of goods sold $103,121$

Sales salaries expense $36,546$

Rent expense$$Selling space $12,538$

Store supplies expense $3,201$

Advertising expense $22,675$

Office salaries expense $33,345$

Rent expense$$Office space $3,201$

Office supplies expense $1,067$

Totals $ $440,381$ $ $440,381$

Beginning merchandise inventory was $$31,473.$ Supplementary records of merchandising activities for the year ended August $31$ reveal the following itemized costs.

Invoice cost of merchandise purchases $ $114,660$

Purchases discounts received $2,408$

Purchases returns and allowances $5,504$

Costs of transportation$-$in $3,900$

Problem $4-3$A $($Algo$)$ Computing merchandising amounts and formatting income statements LO C$1,$ P$4$

Required:

Compute the company$$s net sales for the year.

Compute the company$$s 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

include chart with Cost of Merchandise Purchased

Invoice cost of merchandise purchased

Purchases discounts received

Purchases returns and allowances

Costs of transportation$-$in

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

VALLEY COMPANY

Income Statement

For Year Ended August $31$

$0$

$0$

$0$

Expenses

Selling expenses

Total selling expenses $0$

General and administrative expenses

Total general and administrative expenses $0$

Total expenses $0,$ chart with a Prepare a single$-$step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.

VALLEY COMPANY

Income Statement

For Year Ended August $31$

Expenses

Total expenses $0$