Check my work Check My Work button is now enabledItem 3 Item 3 1.81 points

Kleiner Merchandising Company

Accumulated depreciation $ 700

Beginning inventory 11,000

Ending Inventory 6,600

Expenses 2,050

Net Purchases 13,500

Net Sales 21,500

Krug Service Company

Expenses $ 9,700

Revenues 26,000

Cash 900

Prepaid rent 880

Accounts payable 200

Equipment 2,500

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 a service company and from a merchandiser to compute net income.