Kleiner Merchandising Company Accumulated depreciation$700 Beginning inventory8,500 Ending Inventory4,500 Expenses1,800 Net Purchases9,500 Net

Kleiner Merchandising Company

Accumulated depreciation$700

Beginning inventory 8,500

Ending Inventory 4,500

Expenses 1,800

Net Purchases 9,500

Net Sales 16,500

Krug Service Company


Revenues 21,000

Cash 600

Prepaid rent 640

Accounts payable 200

Equipment 1,900


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.

a. Goods available for sale: ______

Cost of goods sold: _______

Gross profit: _____

b. Net income for Krug: _____

Net income for Kleiner: ______


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