Use the following information (in random order) from a merchandising company and from a service company. Not all information may be necessary for the solutions.

a. For the merchandiser only, compute (1) goods available for sale, (2) cost of goods sold, and (3) gross profit.

b. Compute net income for each company.

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McNell Merchandising Company Krug Service Company Accumulated depreciation... $ 700 Prepaid rent Accounts payable. $ 800 Expenses. Net purchases.... Net sales. $1,450 Expenses.. $12,500 Beginning inventory 5,000 3,900 Revenues 14,000 200 Ending inventory. 1,700 9,500 Cash 700 Equipment ..... 1,300