Use the following information (in random order) from a merchandising company and from a service company. McNeil Merchandising Company Accumulated depreciation Beginning inventory Ending inventory Expenses Net purchases Net sales Krug Service Company Expenses $ 12,500 Revenues 14,000 Cash 700 800 $ 700 5,000 1,700 1,450 3,900 9,500 Prepaid rent Accounts payable Equipment 200 1,300 a. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiser. Hint. Not all information may be necessary. b. Compute net income for each company. Answer is complete but not entirely correct. a. Goods available for sale $ 8,900 ( a. Cost of goods sold $ 7,200 a. Gross profit $ 850 x b. Net income for Krug Service Company $ 1,500 b. Net income for McNeil Merchandising Company $ 0