Kleiner Merchandising Company Accumulated depreciation $ 700 Beginning inventory 13,500 Ending Inventory 8,100 Expenses 2,300 Net Purchases 17,500 Net Sales 26,500 Krug Service Company Expenses $ 10,500 Revenues 31,000 Cash 850 Prepaid rent 600 Accounts payable 200 Equipment 2,800 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.