Use the following information (in random order) from a merchandising company and from a service company. Mchell Merchandising Company Accumulated depreciation Beginning inventory Ending inventory Expenses Net purchases Net sales Krug Service Company Expenses Revenues Cash Prepaid rent Accounts payable Equipment $ 10,000 34,000 Goods available for sale a. Cost of goods sold a. Gross profit 900 620 200 $.700 15,000 9,000 2,450 19,900 29,500 6. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiset Hint Not all information may be necessary. b. Compute net income for each company b. Not income for Krug Service Company b. Not income for McNel Merchandising Company $ 34,900 a
Use the following information (in random order) from a merchandising company and from a service company. Mchell Merchandising Company Accumulated depreciation Beginning inventory Ending inventory Expenses Net purchases Net sales Krug Service Company Expenses Revenues Cash Prepaid rent Accounts payable Equipment $ 10,000 34,000 Goods available for sale a. Cost of goods sold a. Gross profit 900 620 200 $.700 15,000 9,000 2,450 19,900 29,500 6. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiset Hint Not all information may be necessary. b. Compute net income for each company b. Not income for Krug Service Company b. Not income for McNel Merchandising Company $ 34,900 a
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.
Mchell Merchandising Company
Accumulated depreciation
Beginning inventory
Ending Inventory
Expenses
Net purchases
Net sales
Krug Service Company
Expenses
Revenues
Cash
Prepaid rent
Accounts payable
Equipment
$10,000
34,000
aGoods available for sale
a. Cost of goods sold
a. Gross profit
900
629
200
3,100
$ 700
15,000
9,000
2,450
19,990
29,500
a. Compute the goods available for sale, the cost of goods sold and gross profit for the merchandiset Hint Not all information may be
necessary.
b. Compute net income for each company
b. Not income for Krug Service Company
b. Net income for McNeil Merchandising Company
$ 34,900
+
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