Frisco Company’s adjusted trial balance on March 31, 2009, its fiscal year-end, follows....

Frisco Company’s adjusted trial balance on March 31, 2009, its fiscal year-end, follows.

On March 31, 2008, merchandise inventory was $27,841. Supplementary records of merchandising activities

for the year ended March 31, 2009, reveal the following itemized costs.

Invoice cost of merchandise purchases . . . . . . . $101,430

Purchase discounts received . . . . . . . . . . . . . . . 2,130

Purchase returns and allowances . . . . . . . . . . . . 4,868

Costs of transportation-in . . . . . . . . . . . . . . . . 3,900

Required

1. Calculate the company’s net sales for the year.

2. Calculate 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.