BizKid Company’s adjusted trial balance on August 31, 2011, its fiscal year-end, follows.

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BizKid Company’s adjusted trial balance on August 31, 2011, its fiscal year-end, follows.

Debit			Credit
Merchandise inventory		$	33,000
Other (noninventory) assets			132,000
Total liabilities					$	38,115
N. Kidman, Capital						110,629
N. Kidman, Withdrawals			8,000
Sales						225,720
Sales discounts			3,454
Sales returns and allowances			14,898
Cost of goods sold			87,857
Sales salaries expense			30,924
Rent expense—Selling space			10,609
Store supplies expense			2,709
Advertising expense			19,186
Office salaries expense			28,215
Rent expense—Office space			2,709
Office supplies expense			903
Totals		$	374,464		$	374,464

On August 31, 2010, merchandise inventory was $26,631. Supplementary records of merchandising activities for the year ended August 31, 2011, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	97,020
Purchase discounts received		2,037
Purchase returns and allowances		4,657
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 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