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Income statement

Cheaney Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2008. The 2008 operating results for the company were as follows.

Operating revenues $12,878,000
Operating expenses 8,744,000
Operating income $ 4,134,000
Analysis discloses that these data include the operating results of the hotel chain, which were: operating revenues $2,173,000 and operating expenses $2,784,000. The hotels were sold at a gain of $218,000 before taxes. This gain is not included in the operating results. During the year, Cheaney suffered an extraordinary loss of $812,000 before taxes, which is not included in the operating results. In 2008, the company had other revenues and gains of $143,000, which are not included in the operating results. The corporation is in the 30% income tax bracket.
Prepare a condensed income statement. (List amounts from largest to smallest eg 10, 5, 3, 2.)


Solution Summary

The solution explains how to prepare a condensed income statement