QS 5-3 Merchandise accounts and computations LO C2 Kleiner Merchandising Company Accumulated depreciation $ 700 Beginning inventory 8,000 Ending Inventory 3,600 Expenses Net Purchases 8,700 Net Sales 15,500 1,750 Krug Service Company Expenses $ 9, 100 Revenues 20,000 Cash 800 Prepaid rent 840 Accounts payable 200 Equipment 1,900 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 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