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.

Kleiner Merchandising Company
Accumulated depreciation	$	700
Beginning inventory		10,000
Ending Inventory		6,000
Expenses		1,950
Net Purchases		11,900
Net Sales		19,500

Krug Service Company
Expenses	$	8,400
Revenues		24,000
Cash		650
Prepaid rent		660
Accounts payable		200
Equipment		2,200