Kleiner Merchandising Company Accumulated depreciation $ 700 Beginning inventory 12,000 Ending Inventory 7,200 Expenses 2,150 Net Purchases 15,100 Net Sales 23,500 Krug Service Company Expenses $ 10,200 Revenues 28,000 Cash 800 Prepaid rent 580 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.

A.Goods available for sale$27,100

Cost of Goods Sold$19,900

Gross Profits$3,600

B.Net Income for Krug Servie company $17,800

Net Income for Kleiner Merchandising $1,450

Explanation:

Kleiner Merchandising Company

a. Computation of the goods available for sale, and the cost of goods sold and gross profit for the merchandiser.

GOODS AVAILABLE FOR SALE

Beginning Inventory$12,000

Add Net Purchases$15,100

Goods available for sale$27,100

COST OF GOODS SOLD

Goods available for sale$27,100

Less Ending inventory$7,200

Cost of Goods Sold$19,900

GROSS PROFIT

Cost of Goods Sold$19,900

Less Net Sales$23,500

Gross Profits$3,600

b. Using the above information from a service company and from a merchandiser to compute for the net income.

Net Income for Krug Servie company $17,800

($28000 revenue - $ 10200 expenses)

Net Income for Kleiner Merchandising $1,450

company ($3600 gross profits - $ 2150 expenses)

what are the options

explanation:

d,