Valley Company’s adjusted trial balance 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. Debit Credit
Merchandise inventory (ending) $ 32,000
Other (noninventory) assets 128,000
Total liabilities $ 36,960
Common stock 43,076
Retained earnings 64,560
Dividends 8,000
Sales 218,880
Sales discounts 3,349
Sales returns and allowances 14,446
Cost of goods sold 85,312
Sales salaries expense 29,987
Rent expense—Selling space 10,287
Store supplies expense 2,627
Advertising expense 18,605
Office salaries expense 27,360
Rent expense—Office space 2,627
Office supplies expense 876
Totals $ 363,476 $ 363,476
Beginning merchandise inventory was $25,824. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases $ 94,080
Purchases discounts received 1,976
Purchases returns and allowances 4,516
Costs of transportation-in 3,900

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.