Question: Krug Service Company Expenses Revenues $9,700 26,000 Owner, Withdrawals 1,400 Cash 900 Prepaid rent 880 Accounts payable 200 Owner, Capital 4,600 Equipment 2,500 Kleiner Merchandising Company Accumulated depreciation $700 Beginning inventory 11,000 Owner, Capital 1,070 Ending inventory 6,600 Operating expenses 2,050 Purchases 13,500 Sales 21,500 Owner, Withdrawals 1,200 Use the above information from a service company and from a merchandiser to compute net income. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser. (Not all information may be necessary).

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