36

36 Kleiner Merchandising Company Accumulated depreciation $ 700 Beginning inventory 12,5ee Ending Inventory 7,500 Expenses 2,200 Net Purchases 15,900 Net Sales 24,500 10 points 2 Krug Service Company Expenses $10,000 Revenues 29,000 Cash 95a Prepaid rent 9ea Accounts payable 200 Equipment 2,800 Required: a. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiset Hint Not all information may be necessary b. Use the above information from a service company and from a merchandiser to compute net income. a. Goods available for sale Cost of goods sold Gross profit b. Net income for Krug Service Company Net income for Kleiner Merchandising Company