Violet Bick Corporation
(Not rated)
(Not rated)
Violet Bick Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2012. The 2012 operating results for the company were as follows.
| Operating revenues | $12,880,200 | |
| Operating expenses | 8,713,400 | |
| Operating income | $ 4,166,800 |
Analysis discloses that these data include the operating results of the hotel chain, which were: operating revenues $1,954,700 and operating expenses $2,343,600. The hotels were sold at a gain of $185,100 before taxes. This gain is not included in the operating results. During the year, Violet Bick suffered an extraordinary loss of $806,100 before taxes, which is not included in the operating results. In 2012, the company had other revenues and gains of $143,800, which are not included in the operating results. The corporation is in the 32% income tax bracket.
Prepare a condensed income statement.
VIOLET BICK CORPORATION Condensed Income Statement For the Year Ended December 31, 2012 | ||
 Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | $ | |
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Expenses and LossesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | | |
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | | |
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | | |
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | | |
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | | |
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | | |
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | ||
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | $ | |
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | | |
| ||
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | | |
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | ||
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | | |
| Discontinued OperationsDividendsExpensesExtraordinary ItemExtraordinary LossGain on Sale of HotelsIncome Before Extraordinary ItemIncome Before Income TaxesIncome From Continuing OperationsIncome From OperationsIncome Tax ExpenseLoss from Operations of Hotel ChainNet Income / (Loss)Operating ExpensesOperating RevenuesOther Revenues and GainsRetained EarningsTotal ExpensesTotal Operating ExpensesTotal Revenues | $ | |
12 years ago
Problem 18-8A Violet Bick Corporation
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