Kleiner Merchandising Company
Accumulated depreciation	$	700
Beginning inventory		8,500
Ending Inventory		4,500
Expenses		1,800
Net Purchases		9,500
Net Sales		16,500

Krug Service Company
Expenses	$	8,100
Revenues		21,000
Cash		600
Prepaid rent		640
Accounts payable		200
Equipment		1,900

Required:

a. Compute gross profit, the goods available for sale, and the cost of goods sold 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 saleCost of goods soldGross profitb.Net income for Krug Service CompanyNet income for Kleiner Merchandising Company