Question - Merchandise accounts and computations
Kleiner Merchandising Company
Accumulated depreciation$700
Beginning inventory 5,000
Ending Inventory 1,700
Expenses 1,450
Net Purchases 3,900
Net Sales 9,500
Krug Service Company
Expenses$12,500
Revenues 14,000
Cash 700
Prepaid rent 800
Accounts payable 200
Equipment 1,300
Required:
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.