BizKid Company’s adjusted trial balance on August 31, 2005, its fiscal year-end, follows?

Debit Credit Merchandise inventory . . . . . . . . . . . . $ 31,000 Other (noninventory) assets . . . . . . . . 120,400 Total liabilities . . . . . . . . . . . . . . . . . . $ 35,000 N. Kidman, Capital . . . . . . . . . . . . . . . 101,650 N. Kidman, Withdrawals . . . . . . . . . . . 8,000 Sales . . . . . . . . . . . . . . . . . . . . . . . . . 212,000 Sales discounts . . . . . . . . . . . . . . . . . 3,250 Sales returns and allowances . . . . . . . 14,000 Cost of goods sold . . . . . . . . . . . . . . 82,600 Sales salaries expense . . . . . . . . . . . . 29,000 Rent expense—Selling space . . . . . . . 10,000 Store supplies expense . . . . . . . . . . . . 2,500 Advertising expense . . . . . . . . . . . . . . 18,000 Office salaries expense . . . . . . . . . . . . 26,500 Rent expense—Office space . . . . . . . 2,600 Office supplies expense . . . . . . . . . . . 800 Totals . . . . . . . . . . . . . . . . . . . . . . . . $348,650 $348,650 On August 31, 2004, merchandise inventory was $25,000. Supplementary records of merchandising activities for the year ended August 31, 2005, reveal the following itemized costs: Invoice cost of merchandise purchases . . . . . . . $91,000 Purchase discounts received . . . . . . . . . . . . . . . 1,900 Purchase returns and allowances . . . . . . . . . . . . 4,400 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. Check (2) $88,600; (3) Gross profit, $112,150; Net income, $22,750; (4) Total expenses, $172,000

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