Use the following information (in random order) from a merchandising company and from a service company. McNeil Merchandising Company $700 Accumulated depreciation Beginning inventory 6,500 Ending inventory 2,300 Expenses 1,600 Net purchases 6,300 Net sales 12,500 Expenses $ 8,800 Revenues 17,000 Cash 750 Prepaid rent 820 200 Accounts payable Equipment 1,600 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. Krug Service Company

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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
$ 700
6,500
2,300
Expenses
1,600
Net purchases
6,300
Net sales
12,500
Expenses
$ 8,800
Revenues
17,000
Cash
750
Prepaid rent
820
200
Accounts payable
Equipment
1,600
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
Krug Service Company
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 $ 700 6,500 2,300 Expenses 1,600 Net purchases 6,300 Net sales 12,500 Expenses $ 8,800 Revenues 17,000 Cash 750 Prepaid rent 820 200 Accounts payable Equipment 1,600 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 Krug Service Company
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