Use the following information for the Problems below. [The following information applies to the questions displayed below.] 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 Merchandise inventory (ending) Common stock Debit $ 36,500 Credit Other (non-inventory) assets Total liabilities 146,000 $ 42,158 71,965 Retained earnings 49,133 Dividends 8,000 Sales 249,660 Sales discounts 3,820 Sales returns and allowances 16,478 Cost of goods sold 96,761 Sales salaries expense 34,203 Rent expense-Selling space 11,734) Store supplies expense 2,996 Advertising expense. 21,221 Office salaries expense 31,208 Rent expense-Office space. 2,996 Office supplies expense 999 Totals $ 412,916 $ 412,916 Beginning merchandise inventory was $29,456. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $ 107,310 2,254 5,151 3,900 Required 1 Required 2 Required 3 Required 4. Compute the company's net sales for the year. Net Sales Sales $ 249,660 Less: Sales discounts 3,820 Less: Sales returns and allowances 16,478 Net sales $ 229,362 Required 1 Required 2 > Required 1 Required I Required 3 Required 4 Compute the company's total cost of merchandise purchased for the year. Cost of Merchandise Purchased Invoice cost of merchandise purchased $ 107,310 Purchases discounts received 2,254 Purchases returns and allowances 5,151 Costs of transportation-in 3,900 Total cost of merchandise purchased $ 103,805 < Required 1 Required 3 > For Year Ended August 31 Sales $ 249,660 Add: Sales discounts $ 3,820 Less: Sales returns and allowances 16,478 20,298 Net sales 229,362 Cost of goods sold 96,761 132,601 Gross profit Expenses Selling expenses Sales salaries expense Rent expense-Selling space Store supplies expense + Advertising expense Total selling expenses General and administrative expenses Office salaries expense Rent expense-Office space Office supplies expense Total general and administrative expenses Total expenses Net income 34,203 11,734 2,996 21,221 31,208 2,996 999 70,154 35,203 105,357 Required 1 Required 2 Required 3 Required 4 Prepare a single-step income statement that includes these expense categories: cost o general and administrative expenses. VALLEY COMPANY Income Statement For Year Ended August 31 Net sales Expenses Cost of goods sold Selling expenses General and administrative expenses Total expenses Net income $ 96,761 + 96,761 < Required 3 Required 4