Use the following information (in alphabetical order) from a service company and from a merchandiser to compute net income. For the merchandiser, also compute gross profit, the goods available for sale, and the cost of goods sold. Hint: Not all information may be necessary.

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Krug Service Company Kleiner Merchandising Company Expenses.. $ 8,500 Accumulated Depreciation $ 700 Revenues 14,000 Beginning Inventory.. 5,000 Owner, Withdrawals.. 1,600 Owner, Capital.. 950 Cash...... 700 Ending Inventory 1,700 Prepaid Rent 800 Operating Expenses.. 1,450 Accounts Payable. 200 Purchases.... 3,900 Owner, Capital. 3,000 Sales.. 9,500 Equipment 1,300 Owner, Withdrawals 1,600