CASE 4-5 CELTICS Boston Celtics Limited Partnership II and Subsidiaries presented the following consolidated statements of income for 1998, 1997, and 1996. BOSTON CELTICS LIMITED PARTNERSHIP II AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME For the Year Ended June 30, 1998 June 30 1996 une 1997 Revenues: $39,107,960 $31,813,019 $35,249,625 28,002,469 23,269,159 22,071,992 7,915,626 Basketball regular season Ticket sales Television and radio broadcast rights fees 8,569,485 7,458,651 Other, principally promotional advertising 75,679914 62,997,804 64,780,268 Costs and expenses Basketball regular season 40,401,643 40,941,156 27,891,264 2,386,042 13,464,566 13,913,893 15,053,333 Team 2,820,107 2,606,218 Game General and administrative Selling and promotional Depreciation Amortization of NBA franchise and other 4,819,478 208,162 2,973,488 140,894 4,680,168 165,035 61,878,991 13,800,923 189,324 164,702 722,519 164,703 48,829,900 15,950,368 intangible assets 62,275,285 Interest expense Interest income Net realized gains (losses) on disposition of (6,017,737) (5,872,805) (6,387,598) 6,609,541 6,402,366 8,175,184 marketable securities and other short-term investments (18,235) 361,051 (101,138) Income from continuing operations before Provision for income taxes Income from continuing operations 17,636,816 14,167,317 1,900,000 12,267,317 1,820,306 1,400,000 income taxes 1,850,000 420,306 15,786,816 (continued)