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
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
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 24CE: Inventory Costing: Average Cost Refer to the information for Filimonov Inc. and assume that the...
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