Groupon Case Questions

To answer the questions, you need to search relevant information from the internet (hint: the most important source of information is SEC filings). Other useful websites include Yahoo! Finance, Google Finance, Capital IQ etc. 1.Compare Groupon’s revenue, cost of revenue, gross profit, net income(loss) for 2008, 2009, 2010 under the gross method (S-1 filed on 6/2/2011) and net method (amended S-1 filed on 11/1/2011). 2.In your opinion, why did Groupon insist on the gross method?  3.In Groupon’s justification to meet the six criteria to use the gross method under ASC 605-45-45, which argument(s) are weak in your opinion and why?  4.What do you think of Groupon’s second argument?