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

Valley Company's adjusted trial balance on August 31, 2013, its fiscal year-end, follows.
Merchandise inventory
Other (noninventory) assets
Total liabilities
K. Valley, Capital
K. Valley, Withdrawals
Sales
Sales discounts
Sales returns and allowances
Cost of goods sold
Sales salaries expense
Rent expense-Selling space
Store supplies expense
Advertising expense
Office salaries expense
Rent expense-Office space
Office supplies expense
Totals
Debit Credit
s 31,000
124,000
8,000
3,244
13,995
82,768
29,049
9,966
2,544
18,023
26,505
2,544
848
$ 35,805
104,641
212,040
$ 352, 486 $ 352,486
On August 31, 2012, merchandise inventory was $25,017. Supplementary records of merchandising
activities for the year ended August 31, 2013, reveal the following itemized costs.
Invoice cost oi merchandise purchases
Purchase discounts received
Purchase returns and allowances
Costs of transportation-in


$ 91,140
1,914
4,375
3,900

1. Compute the company's net sales for the year.
Net sales         $ 194,801

2. Compute the company's total cost of merchandise purchased for the year.
 Total cost of merchandise purchased $ 88,751

3. Prepare a multiple-step income statement that includes separate categories for selling expenses and

for 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.

From the dropdown box beside each definition, select the appropriate letter for each term.
A. Sales discount E. FOB shipping point H. Purchase discount
B. Credi! period F. Gross profit I. Cash discount
C. Discount period G. Merchandise inventory J. Trade discount
D. FOB destination

The cost of merchandise inventor/ includes which of the following:
c. Costs incurred to buy the goods.
 a. Costs incurred to make the goods ready for sale.
d. Both band c.
e. a, b, and c.
 b. Costs incurred to ship the goods to the store(s).