3 Kleiner Merchandising Company Accumulated depreciation Beg

3 Kleiner Merchandising Company Accumulated depreciation Beginning inventory Ending Inventory Expenses Net Purchases Net Sales 700 5,000 1,70e 1,450 3,900 9,500 oints Krug Service Company Expenses Revenues Cash Prepaid rent Accounts payable Equipment $12,500 14,000 700 800 200 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 Answer is complete but not entirely correct. 8,900 7,200 2,300 850 1,500 . Goods available for sale Cost of goods sold Gross proft b. Net income for Krug Service Company Net income for Kleiner Merchandising Company

Solution

Replace $850 with $1500
And $1500 with $850

As I see part A of your answer is correct.
You have calculated part B amounts correctly as well,but replaced one
for another and entered them wrongly.

Enter $1500 for \'Net Income for Krug Service Company\' (14000-12500)

Enter $850 for \'Net income for Kleiner Merchandising Company\' (Gross
profit 2300-1450 = 850)