Lucy and Nick Lars, local golf stars, opened the Chip-Shot Driving Range on March 1, 2015, by investing Tk.20000 of their cash savings in the business. A caddy shack was constructed for cash at a cost of Tk. 6000 and Tk. 800 was spent on golf balls and golf clubs. The Lars leased five acres of land at a cost of Tk. 1,000 per month and paid the first month’s rent. During the first month, advertising costs totaled Tk. 750, of which Tk. 150 was unpaid at March 31, and Tk. 400 was paid to members of the high school golf team for retrieving golf balls. All revenues from customers were deposited in the company’s Bank account. On March 15, Lucy and Nick withdrew a total of Tk. 800 in cash for personal living expenses. A Tk. 100 utility bill was received on March 31 but was not paid. On March 31, the balance in the company’s Bank account was Tk. 15,100. Lucy and Nick thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a loss of Tk. 4,900 to net income Tk. 1,650.

Required: Answer the following questions:

(i) How could the Lars have concluded that the business operated at a loss of Tk. 4,900? Was this a valid basis on which to determine net income?
(ii) Without preparing an income statement, determine the actual net income for March.