Meman Use the following information (in random order) from a merchandising company and from a service company.McNeil Merchandising CompanyAccumulated depreciationBeginning inventoryEnding inventoryExpensesNet purchasesNet salesKrug Service CompanyExpensesRevenuesCashPrepaid rentAccounts payableEquipment$ 12,50014,0007008002001,300$ 7005,0001,7001,4503,9009,500a. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiser. Hint. Not all information maybe necessary.b. Compute net income for each company.a. Goods available for salea. Cost of goods solda. Gross profitb. Net income for Krug Service Companyb. Net income for McNeil Merchandising Company$$8,9007,200

Cost of goods available for sale: It represent the total cost of the goods which were in the…

a. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiser. Hint. Not all information may be necessary. b. Compute net income for each company. a. Goods available for sale a. Cost of goods sold a. Gross profit b. Net income for Krug Service Company b. Net income for McNeil Merchandising Company $ $ 8,900 7,200

a. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiser. Hint. Not all information may be necessary. b. Compute net income for each company. a. Goods available for sale a. Cost of goods sold a. Gross profit b. Net income for Krug Service Company b. Net income for McNeil Merchandising Company $ $ 8,900 7,200

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.3P

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Question

Meman

Use the following information (in random order) from a merchandising company and from a service company.
McNeil Merchandising Company
Accumulated depreciation
Beginning inventory
Ending inventory
Expenses
Net purchases
Net sales
Krug Service Company
Expenses
Revenues
Cash
Prepaid rent
Accounts payable
Equipment
$ 12,500
14,000
700
800
200
1,300
$ 700
5,000
1,700
1,450
3,900
9,500
a. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiser. Hint. Not all information may
be necessary.
b. Compute net income for each company.
a. Goods available for sale
a. Cost of goods sold
a. Gross profit
b. Net income for Krug Service Company
b. Net income for McNeil Merchandising Company
$
$
8,900
7,200

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