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

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[The following information applies to the questions displayed below.] 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)		$	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

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

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

rev: 09_18_2019_QC_CS-181259

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

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.

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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the company's net sales for the year. Net Sales Sales Net sales Required 1 Required 2 >