7,000 Kleiner Merchandising Company Accumulated depreciation $ 700 Beginning inventory Ending Inventory 2,500 Expenses 1,650 Net Purchases 7,100 Net Sales 13,500 Krug Service Company Expenses $ 7,800 Revenues 18,000 Cash 550 Prepaid rent 620 Accounts payable 200 Equipment 1,600 Required: a. Compute the goods available for sale, and the cost of goods sold and gross profit for the merchandiser. 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