Answer:
A.
a. Good Available For Sale $21,900
b. Cost of goods sold $15,900
c. Gross profit $3,600
B. Net income for merchandise company $1650
Net income for service company $15600
Explanation:
A.Compution for gross profit, the goods available for sale, and the cost of goods sold for the merchandiser.
a. Good Available For Sale
Using this formula
Good available fro sale = Beginning inventory + Net purchase
Let plug in the formula
Good available fro sale = $10,000 + $11,900
Good available fro sale = $21,900
b. COST OF GOODS SOLD
Using this formula
Cost of goods sold = Goods available for sale - Ending inventory
Let plug in the formula
Cost of goods sold= $21,900 - $6000 =
Cost of goods sold= $15,900
c. GROSS PROFIT
Using this formula
Gross profit= Sales - COGS
Let plug in the formula
Gross profit = $19,500 - $15,900
Gross profit= $3,600
b.Computation for net income
Net income for merchandise company = Gross profit - Expenses = $3,600 - $1,950 = $1,650
Net income for service company = Revenue - Expenses = $24,000 - $8,400 = $15,600
