With the class divided into groups, answer the following.
a. How could the Ramons have concluded that the business operated at a loss of $6,100? Was this a
valid basis on which to determine net income?
b. How could the Ramons have concluded that the business operated at a net income of $2,480? (Hint:
Prepare a balance sheet at March 31.) Was this a valid basis on which to determine net income?
c. Without preparing an income statement, determine the actual net income for March.
d. What was the revenue recognized in March?
