
A service company is a company which provides services rather than selling products to generates its net income.
A merchandise company is a company which buys goods and resale them at above cost to generate its net income.
Cost of goods available for sale means the cost of goods which are available to be sold i.e. opening goods and any purchases made by the company.
Cost of goods sold means the direct cost of manufacturing the products or cost of acquiring goods which a company sold during a period.
To calculate:
We have to calculate net income for the given two Companies and goods available for sale, cost of goods sold and gross profit for merchandising company.

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