Kleiner Merchandising Company

Accumulated depreciation$700

Beginning inventory8,500

Ending Inventory4,500

Expenses1,800

Net Purchases9,500

Net Sales16,500

Krug Service Company

Expenses$8,100

Revenues21,000

Cash600

Prepaid rent640

Accounts payable200

Equipment1,900

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 sale: ______

Cost of goods sold: _______

Gross profit: _____

b. Net income for Krug: _____

Net income for Kleiner: ______

PLEASE SHOW YOUR WORK!!!!! I AM ACTUALLY TRYING TO LEARN. THANKS!