Merchandise accounts and computations LO1 Use the following information (in random order) from a merchandising company and from a service com-pany. Hint: Not all information may be necessary for the solutions. 1. For the merchandiser only, compute (1) goods available for sale, (2) cost of goods sold, and (3) gross profit. 2. Compute net income for each company. McNeil Merchandising Company Accumulated depreciation. $700 Beginning inventory 5,000 Ending inventory.... 1,700 Expenses.... 1,450 Net purchases... 2,900 Net sales... 9,500 Krug Service Company $12,500 Expenses... 14,000 Revenue.. 700 Cash ... 800 Prepaid ren...... 200 Accounts payable... Equipment.... 1,300