a 5000 b 2 QS 43 Use the following information in random ord

a. $5,000 b. ,2 QS 4-3 Use the following information (in random order) from a merchandising company and from a pany, Hint: Not all information may be necessary for the solutions a. For the merchandiser only, compute: Merchandise accounts and computations C2 1. Goods available for sale. 2. Cost of goods sold. 3. Gross profit. b. Compute net income for each company Kleiner Merchandising Company Krug Service Company d depreciation Expenses Revenues Cash 5,000 14,000 1,700 Net purchases..3,900 9,500 Equipment

Solution

QS 4-3

a.3. Gross profit = Net sales - Cost of goods sold = $9500 - $7200 = $2300

b. Net income:

Kleiner Merchandising Company: Net sales - Cost of goods sold - Expenses = $9500 - $7200 - $1450 = $850

OR

Gross profit - Expenses = $2300 - $1450 = $850

Krug Service Company: Revenues - Expenses = $14000 - $12500 = $1500

Please post independent questions separately. Thank you.

	Beginning inventory	5000
	Add: Net purchases	3900
a.1.	Goods available for sale	8900
	Less: Ending inventory	1700
a.2.	Cost of goods sold	7200