Reference no: EM13579604

Valley Company's adjusted trial balance on August 31, 2013, its fiscal year-end, follows.

Merchandise inventory		$	36,000
Other (noninventory) assets			144,000
Total liabilities					$	41,580
K. Valley, Capital						119,601
K. Valley, Withdrawals			8,000
Sales						246,240
Sales discounts			3,767
Sales returns and allowances			16,252
Cost of goods sold			95,489
Sales salaries expense			33,735
Rent expense-Selling space			11,573
Store supplies expense			2,955
Advertising expense			20,930
Office salaries expense			30,780
Rent expense-Office space			2,955
Office supplies expense			985
Totals		$	407,421		$	407,421

On August 31, 2012, merchandise inventory was $29,052. Supplementary records of merchandising activities for the year ended August 31, 2013, reveal the following itemized costs.

Invoice cost of merchandise purchases$105,840    

Purchase discounts received 2,223   

Purchase returns and allowances 5,080    

Costs of transportation-in 3,900

A) Compute the company's net sales for the year.

B) Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses.

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