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 $ 8,700 27,000 700 680 200 2,500 $ 700 11,500 6,900 2,100 14,300 22,500 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
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 $ 8,700 27,000 700 680 200 2,500 $ 700 11,500 6,900 2,100 14,300 22,500 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
$8,700
27,000
700
680
200
2,500
$ 700
11,500
6,900
2,100
14,300
22,500
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
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