Use the following information (in random order) from a service company and from a merchandiser to compute net income. For the merchandiser, also compute gross profit, the goods available for sale, and the cost of goods sold. Hint: Not all information may be necessary.

Krug Service company

Expenses ..$8,500

Revenues..14, 000

Owner, withdrawals1, 600

Cash700

Prepaid rent..800

Accounts Payable200

Owner, Capital.3, 000

Equipment.1, 300

Kleiner Merchandising Company

Accumulated Depreciation$700

Beginning inventory..5, 000

Owner, Capital..950

Ending inventory1, 700

Operating Expenses..1, 450

Purchases 3, 900

Sales9, 500

Owner withdrawals.1, 600