Comparative income statements for Thesaurus Inc. are as follows:

Required
The president and management believe that the company performed better in 2017 than it did in 2016. Write the president's letter to be included in the 2017 annual report. Explain why the company is financially sound and why shareholders should not be alarmed by the reduction in income in a year when operating revenues increased significantly?

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Operating expenses Operating income Gain on the sale of subsidiary Net income 2017 $500,000 120,000 $380,000 2016 $200,000 100,000 $100,000 400,000 $500,000 $380,000