Use the following information $($in random order$)$ from a merchandising company and from a service company. Hint: Not all information may be necessary for the solutions.

a$.$ For the merchandiser only, compute $(1)$ goods available for sale, $(2)$ cost of goods sold, and $(3)$ gross profit.

b$.$ Compute net income for each company.

QS $4-3$

Merchandise accounts and computations

C$1$

$\backslash$table$[[$Krug Service Company$],[$Expenses dotsdotsdotsdots,$$12,500,$Prepaid rent dotsdotsdots,$$800,],[$Revenues dotsdotsdotsdots,$14,000,$Accounts payable dotsdots,$200,],[$Cash dotsdotsdotsdotsdots,$700,$Equipment dotsdotsdotsdots,$1,300,]]$