C T | search the web CEHE Independence U ? Hospitality Association × 15,887 unre
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C T | search the web CEHE Independence U ? Hospitality Association × 15,887 unread isa a X Accounting question X 'Activity based costing >. Week Three: Assess me . Secure ! https://ceheindependence.vitalsource.com/#/books/9781285401607/cfi/2201/4/4@0.00:44.8 statements of income for 1998, 1997, and 1996. Search BOSTON CELTICS LIMITED PARTNERSHIP II AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Search Book For the Year Ended June 30, 1998 June 30, 1997 June 30, 1996 Basketball regular season S39,107,960 S31,813,019 $35,249,625 28,002,469 23,269,159 22,071,992 Television and radio broadcast rights fees 8,569,485 7915,626 458,651 Other, principally promotional advertising75,679,91462,997,804 64,780,268 Ticket sales Costs and expenses: Basketball regular season Team 40,401,643 2,820,107 40,941,156 27,891,264 2,606,218 13,464,566 13,913,893 15,053,333 4,680,1682,973,488 140,894 2,386,042 Game General and administrative Selling and promotional 4,819,478 208,162 189,324 Amortization of NBA franchise and other 164,703 65,03517528548,829,900 intangible assets 61,878,991 13,800,923 Enter a term above to search book content Interest expense Interest income 722,519 5,950,368 (6,017,737) 5,872805 (6,387,598) 8,175,184 6,402,366 6,609,541 Net realized gains (losses) on disposition of marketable securities and other short-term (18,235) 14,167,317 12,267,317 361,051 (101,138) Income from continuing operations before income taxes Provision for income taxes Income from continuing operations 1,820,306 17,636,816 1,900,000 1,400,000 1,850,000 420,30615,786,816 O Type here to search 3-55 PM 4/28/2018Explanation / Answer
Part a:
Amortization of NBA franchise and other intangible assets of organization has been made consistently as can be seen from the financial statements of the organization. The NBC club has a limited a specific period for which the franchise has been purchased. Taking into consideration the period of the franchise the franchisee fees has been amortized on a straight line basis in the income statement of the organization. Along with that the organization has also provided amortization on other intangible asset each year.
Part b:
No, discontinued operations would not be included in projected income of the club in the future since the discontinued operations will not contribute to the income of the club in the future. Hence, it would not be included to ascertain the projected future income of the club.
Part c:
The major reasons for the increases in costs and expense between 1996 and 1997 are provided below:
Part d:
The major reasons for the increases in income from continuous operations between 1996 and 1997 are provided below:
Part e:
The reason that distributions in 1998 are significantly higher than 1996 is mainly because the improvement in financial performance of the organization in 1998. Thus, the distributions made at larger proportion in 1998 that the organization did in 1996.
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