Directions Using the information provided, create a Word or Excel document with your responses to each question, then upload the document into Blackboard. A. Merchandise equations and flows Use the following information (in random 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. Krug Service Company Kleiner Merchandising Company $ 700 Expenses........... Revenues. Owner, Withdrawals ....... Cash Prepaid rent... Accounts payable........ Owner. Capital... Equipment. $ 8,500 14.000 1,600 700 800 200 3,000 1,300 Accumulated depreciation...... Beginning inventory.......... Owner. Capital............. Ending inventory Operating expenses..... Purchases.... Sales Owner, Withdrawals 5,000 950 1.700 1,450 3.900 9,500 .600 B. Preparing journal entries-perpetual system Journalize the following merchandising transactions for Chilton Systems assuming it uses a perpetual inventory system. 1. On November 1, Chilton Systems purchases merchandise for $1,500 on credit with terms of 275, n/30, FOB shipping point; invoice dated November 1. 2. On November 5, Chilton Systems pays cash for the November 1 purchase. 3. On November 7, Chilton Systems discovers and returns S200 of defective merchandise 4. On November 10, Chilton Systems pays $90 cash for transportation costs with the November 1 purchase 5. On November 13, Chilton Systems sells merchandise for $1,600 on credit. The cost of the merchandise is $800. 6. On November 16, the customer returns merchandise from the November 13 transaction The returned items are priced at $300 and cost $130, the items were not damaged and were returned to inventory. C. Prepare an income statement following IFRS L'One reports the following income statement accounts for the year ended December 31, 2013 (euros in millions) Prepare the income statement for this company for the year ended December 31, 2013, following usual IFRS practices 2.961.4 29.1 Net profit. Finance costs Net sales Gross profit......... Other income ....... Cost of sales 22,976.6 16,3748 1452 6,6018 Income tax expense Profit before tax expense. Research and development expense Selling, general and administrative expense Advertising and promotion expense Finance income.. . 1.063.0 4.024.4 857.0 4.7568 6.8862 33.5 D. Computing goods available for sale Wattan Company reports beginning inventory of 10 units at $60 each Every week for four weeks it purchases an additional 10 units at respective costs of $61, $62, $65, and $70 per unit for weeks 1 through 4. Calculate the cost of goods available for sale and the units available for sale for this four-week period. Assume that no sales occur during those four weeks