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Unformatted text preview: Mary and Jack thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a loss of $6,100 to net income of $2,450. Instructions With the class divided into groups, answer the following. (a) How could the Grays 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 Grays have concluded that the business operated a t a net income of $2,450? (Hint: Prepare a balance sheet at March 31.) Was the 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 earned in March?...
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This note was uploaded on 07/28/2010 for the course ACC ACC101 taught by Professor Mrsmith during the Spring '08 term at Acton School of Business.
- Spring '08