Valley Company's adjusted trial balance on August 31, 2016, its fiscal year-end, follows.On August 31, 2015, merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31, 2016, reveal the following itemized costs.
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.
(3) Gross profit, $136,850; Net income, $49,850
Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.
(4) Total expenses, $161,500
