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Violet Bick 12900000

Price: $2.50

Violet Bick Corporation owns a number of cruise ships and a chain of hotels. The
hotels, which have not been profi table, were discontinued on September 1, 2014. The 2014
operating results for the company were as follows.

Operating revenues   12,900,000
Operating expenses   8,700,000
Operating income   4,200,000

Analysis discloses that these data include the operating results of the hotel chain, which
were operating revenues $2,000,000 and operating expenses $2,500,000. The hotels were
sold at a gain of $300,000 before taxes. This gain is not included in the operating results.
During the year, Violet Bick suffered an extraordinary loss of $700,000 before taxes, which
is not included in the operating results. In 2014, the company had other expenses and
losses of $200,000, which are not included in the operating results. The corporation is in
the 30% income tax bracket.

Prepare a condensed income statement.

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